SBI hikes benchmark lending rate by 0.2 pc

New Delhi, Sep 1 Home, auto and other loans would become costlier as the nation's largest lender SBI Saturday increased its benchmark lending rates or MCLR by 0.2 per cent, an improvement taken after by different banks.

The new rates are viable from today.

State Bank of India (SBI) has increased the lending rate by 20 basis points across all tenors up three years.

Presently SBI's overnight and one-month tenors' Marginal Cost of Funds Based Lending Rate (MCLR) remains at 8.1 for each penny as against 7.9 percent, according to the SBI's site.

The MCLR for a one-year tenor increased to 8.45 percent from 8.25 percent prior. Most of the retail loans are benchmarked against one-year MCLR.

The MCLR for a three-year tenor increased to 8.65 percent from 8.45 percent.

The rate climb by bank comes multi month after the Reserve Bank of India (RBI) climbed benchmark loaning rate called repo rate by 25 basis points to 6.5 percent.

RBI had last raised the repo rate on June 6 by 0.25 percent to 6.25 percent. That expansion was the first since January 28, 2014 when rates were climbed by a comparable extent to 8 percent