The largest public sector bank in the country, State Bank of India has hiked the MCLR interest rate by ten basis points across all loan tenors, effective from April 15, 2022. As a result of this hike, the home, auto and loans are expected to become more expensive. The announcement was made despite the Reserve Bank of India had kept the key policy interest rates unaltered for the twelfth consecutive time in its April monetary policy review.
As per the information provided on the SBI website, one-month, three-month, and six-month MCLR rates have been raised by 10 basis points to 6.75 percent, 6.75 percent, and 7.05 percent respectively. Likewise, one-year, two-year, and three-year MCLR rates stand at 7.10 percent, 7.30 percent, and 7.40 respectively.
More hikes in interest rates are expected in the coming days as RBI will raise policy interest rates in the next MPC meeting in June by up to 50 basis points owing to the high inflation. Retail inflation has breached the RBI’s upper tolerance band of six percent for the third time this year and the food and fuel prices are only likely to increase due to tensions between Russia and Ukraine.
