SBI loans to get costlier as bank hikes key lending rate; Details here

Following the RBI MPC's repo rate hike earlier this month, many banks like Bank of Baroda, Bank of India, and Punjab National Bank have also hiked their key lending rates

The State Bank of India (SBI) announced a hike in the marginal cost of funds-based lending rate (MCLR) by 10 basis points (bps) across tenures. The new rates will be effective from February 15. MCLR is the minimum rate at which a bank can provide loans to its customers. 

The Reserve Bank of India (RBI) established MCLR in 2016 to determine lending rates for various loans. It usually takes the same trajectory as the RBI monetary policy committee (MPC) takes. 

The SBI's MCLR hike comes just days after the RBI MPC announced a 25 bps repo rate hike to 6.5