New Delhi:State-owned Andhra Bank has increased the marginal cost of funds based lending rate (MCLR) by 0.05% to up to 8.55% for various tenors.

“This is to inform that the bank has increased its MCLR with effect from June 15, 2018," Andhra Bank said in a BSE filing.

The MCLR for overnight, 1 month, 3 month, 6 month and one year tenors has been raised by 0.05% each to 8%, 8.05%, 8.25%, 8.40% and 8.55%, respectively, the bank said.

The move will make consumer loans such as auto, car and home loans costlier for buyers. The RBI had earlier this month increased the key lending rate by 0.25% to 6.25%.

Following this, a number of banks have hiked the interest rate. However, big players such as SBI, ICICI Bank and HDFC Bank had increased MCLR prior to the policy rate decision by RBI in anticipation of a rate hike.

Bank of India, Oriental Bank of Commerce, Syndicate Bank, Karur Vysya Bank and Indian Bank have also raised the lending rate.

Stock of Andhra Bank closed 2.99% down at Rs35.70 on BSE.