Loans to be costlier as banks hike rates; SBI, Axis revise MCLR upwards

Kotak Mahindra Bank, increased its one-year MCLR by 5 bps to 7.4 per cent, from April 16

State Bank of India (SBI), the country’s largest lender, and some of the other large banks have started increasing their benchmark lending rate — the marginal cost of funds-based lending rate (MCLR) — a move that will make customers pay more on their housing, auto, and other retail loans.

SBI increased its MCLR by 10 basis points, with effect from April 15, across all tenors (100 bps = 1 percentage point).

The one-year MCLR has been revised to 7.1 per cent while two- and three-year MCLRs have been raised to 7.3 per cent and 7.4 per cent, respectively. The MCLR is a