Mumbai, Aug 17: State Bank of India (SBI), India’s largest state-run bank, has increased interest rates on loans by 10 basis points across tenors for the third consecutive month, effective from Thursday.SBI’s Marginal Cost of Funds Based Lending Rate (MCLR) for a three-year tenor is now 9.10%, compared to 9% earlier. Overnight MCLR is now 8.20%, compared to 8.10 previously. The bank had raised its MCLR previously by up to 30 basis points in some tenors since June 2024.
MCLR is the absolute minimum interest rate at which a bank can lend money, except in some certain cases, where the Reserve Bank of India (RBI) allows it. A bank cannot lend money at an interest rate below it.