Repaying a loan could become an expensive affair, with two of the largest banks in India, SBI and ICICI Bank hiking their home loan interest rates. While State Bank of India has increased its MCLR by 20 basis points, ICICI Bank has increased its 6-month MCLR by 0.15 per cent.
The new interest rates came into effect on September 1. The MCLR for SBI currently ranges between 8.10 per cent and 8.65 per cent. ICICI’s MCLR ranges between 8.30 per cent and 8.55 per cent.
|Tenor||ICICI MCLR (%)||SBI MCLR|
SBI’s 2-year and 3-year MCLR are currently 8.55 per cent and 8.65 per cent respectively.
One trigger for the rate hike could be RBI’s decision to increase the repo rate by 0.25 per cent recently.
The increased rates will be applicable across different loan products. Lenders such as HDFC and Indiabulls Housing Finance had also raised their interest rates recently.
Sources: The Times of India, Economic Times.