Leading Indian lenders, the State Bank of India (SBI) and HDFC Bank have increased their marginal cost of funds based lending rate (MCLR) with effect from 10 December and 7 December respectively. MCLR is the minimum interest rate set by a bank, below which it cannot lend, except for some selected cases allowed by the RBI. It works as an internal benchmark for the bank to set interest rates when it lends.
The increase, though marginal, will mean that loans especially retail loans like home loan, car loan or personal loans are set to get costlier for customers of these banks. Soon other banks will follow suit.
Here are the revised MCLRs of both the lenders as per their official websites.
State Bank of India MCLR for various tenures with effect from 10 December 2018:
|Tenure||Existing MCLR in %||Revised MCLR in %|
The BPLR (Benchmark Prime Lending Rate) was increased from 13.75 percent to 13.80 percent and base rate was increased from 9 percent to 9.05 percent.
HDFC Bank MCLR for various tenures with effect from 7 December 2018:
|Tenure||MCLR in %|