New Delhi: Home, auto and other loans are set to become costlier, with the country’s largest lender, State Bank of India, on Saturday increasing its benchmark lending rates or MCLR by 0.2%. The new rates are effective from today.

SBI has increased the lending rate by 20 basis points across all tenors up to three years. Now SBI’s overnight and one-month tenors’ Marginal Cost of Funds Based Lending Rate (MCLR) stands at 8.1%, compared with 7.9% earlier, according to the bank’s website. The MCLR for a one-year tenor rose to 8.45% from 8.25% earlier. Most of the retail loans are benchmarked against one-year MCLR. The MCLR for a three-year tenor increased to 8.65% from 8.45%.

The rate hike by the bank comes a month after the Reserve Bank of India (RBI) hiked benchmark lending rate, or repo rate, by 25 basis points to 6.5%. The RBI last raised the repo rate on June 6 by 0.25% to 6.25 per cent. That increase was the first since January 28, 2014, when rates were hiked by a similar proportion to 8%.

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