state Bank of India has increased its marginal cost of lending rate (MCLR) on loans by 20 basis points. higher MCLR With effect from 15th August, 2022. (One basis point is equal to one-hundredth of a percentage.) Loans linked to an external benchmark (EBLR) and Repo Linked (RLLR) have also been increased as per the website.

According to the notice issued on the website of State Bank, the one-year MCLR rate has increased from 7.50 percent to 7.70 percent. Rates have been increased from 7.15 per cent to 7.35 per cent for overnight, one month and three months.

The MCLR for a period of six months has been increased from 7.45 per cent to 7.65 per cent, two-year MCLR and three-year MCLR to 7.90 per cent and 8 per cent, respectively.

EBLR

State Bank Of India has increased the external benchmark-based lending rate with effect from August 15, 2022. The rates have been increased from 7.55% + CRP + BSP to 8.05% + CRP + BSP.

EBLR is a combination of repo rate plus spread plus credit risk premium which is based on your credit score.

Bank Repo Linked Lending Rate (RLLR) has been increased from 7.15% + CRP to 7.65% + CRP.

RBI hikes repo rates

In its policy review, the Reserve Bank of India increased the key policy rate, the repo rate, by half a percentage point. This is the third consecutive hike by the RBI after raising interest rates earlier this year.

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The RBI has already raised its marginal cost of lending rate, soon after the repo rate hike.