EMI on loans likely to increase as SBI hikes base rate of lending

The State Bank of India (SBI) has hiked its base rate of lending from 10.10 per cent to 10.25 per cent which is likely to lead to an increase in the EMIs of home, auto and personal loans.

The increase in the marginal cost of lending rate (MCLR) of the country’s leading bank now ranges between 8 per cent and 8.85 per cent.

The new rates have come into effect from December 15.

The overnight MCLR rate is set at 8 per cent, while the rates for one month and three-month tenures have been increased from 8.15 per cent to 8.20 per cent.

Since SBI is the bellwether for the banking sector, it is expected that other banks may also follow suit and hike interest rates.