SBI, BoB, others hike lending rates

New Delhi: EMIs for home, car and personal loans are set to go up for existing borrowers, with State Bank of India (SBI) and other major lenders, including Bank of Baroda (BoB), Axis Bank and Kotak Mahindra Bank increasing their benchmark lending rates by up to 0.10 per cent.

The lending rate hike by these banks — which comes after a gap of around three years — is likely to be followed by others, which will push up the Equated Monthly Instalments (EMIs) for different categories of loans to consumers. The country's largest lender SBI has revised its marginal cost of funding-based lending rate (MCLR) by 0.10 per cent across tenors.

The bank revised the lending rate from 7 per cent to 7.10 per cent for the one-year tenure. The revised MCLR is effective from April 15, as per information posted on SBI's website. The overnight, one-month and three-month MCLRs also rose by 10 basis points (bps) to 6.75 per cent, whereas the six-month MCLR increased to 7.05 per cent.

The two-year MCLR increased by 0.1 per cent to 7.30 per cent, and the three-year MCLR rose to 7.40 per cent, as per SBI's new rate chart. Bank of Baroda (BoB), Axis Bank and Kotak Mahindra Bank have also hiked the benchmark one-year MCLR — against which most of the consumer loans are priced — by 0.05 per cent each.