South Indian Bank raises MCLR rates by up to 0.20% effective Monday

Private sector lender South Indian Bank has raised the marginal cost of funds based lending rates by up to 0.20 per cent across various tenors to be effective from Monday.

The Marginal Cost of Funds Based Lending Rates (MCLR) applicable for multiple tenors has been revised with effect from June 20, 2022, South Indian Bank said in regulatory filing on Saturday.

The benchmark one-year MCLR has been revised upwards to 8.35 per cent from 8.15 per cent earlier.

The one-year MCLR is the rate against which most of the consumer loans such as auto, home and personal are decided.

The three-month MCLR has also been revised up by equal measure to 7.95 per cent.

The other tenor loans such as overnight, one-month and six-month have been upped by 0.15 per cent each in the range of 7.80-8.05 per cent, the bank said.

Most of the banks have revised their lending rate after the Reserve Bank of India increased the benchmark key repo rate by 0.50 per cent to 4.90 per cent earlier on June 8.

The repo is the short-term lending rate that the RBI charges to banks from their borrowing needs.