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EMIs for home, car and personal loans are set to go up as major lenders like the State Bank of India (SBI), Axis Bank, Bank of Baroda (BoB) and Kotak Mahindra Bank have hiked their benchmark lending rates. State Bank of India has increased its marginal cost of funding based lending rate (MCLR) by 10 basis points (bps) across tenors, as per data available on the SBI website.

Bank of Baroda has increased its one-year MCLR by 5 bps.

Private sector lenders Axis Bank and Kotak Mahindra Bank have also hiked one-year MCLR rates.

Banks have hiked lending rates for the first time in around three years. Other banks are also likely to increase their lending rates in the coming days.

The increase in the MCLR by various banks has come after the Reserve Bank of India (RBI) sounded hawkish as it turned its focus on tackling inflation, from supporting growth, in the monetary policy review meeting earlier in the month. The six-member Monetary Policy Committee said its focus would be on withdrawing accommodation.

Banks hike MCLR rates. What does it mean for customers?

EMIs linked to the MCLR would see a slight increase, but loans taken against other benchmarks like EBLR and RLLR will continue to be static. SBI's EBLR (external benchmark based lending rate) rate is 6.65 per cent, while the repo-linked lending rate (RLLR) is 6.25 per cent, effective April 1.

Bank of Baroda hikes MCLR

 Overnight MCLR 6.50%

1 Month MCLR 6.95%

3 Month MCLR 7.10%

6 Month MCLR 7.20

1 Year MCLR 7.35

Axis Bank hikes MCLR

Overnight 7.20%

One month 7.20%

Three months 7.30%

Six months 7.35%

One year 7.40%

Two years 7.50%

Three years 7.55%

SBI hikes MCLR 

Overnight 6.75

One Month 6.75

Three Month 6.75

Six Month 7.05

One Year 7.10

Two Years 7.30

Three Years 7.40

 

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