SBI raises lending rate by 10 basis points across tenures from August 15: Will loan EMIs go up?

The State Bank of India (SBI), the largest state-owned bank in India, has announced an increase in its lending rates by 10 basis points across tenors, effective from August 15, 2024. This marks the third consecutive month that the bank has raised its rates, indicating a trend of tightening credit conditions. The rate hike will impact the Marginal Cost of Funds Based Lending Rate (MCLR), which is the benchmark used by the bank to set interest rates on various types of loans, including home, auto, and personal loans. The MCLR is a critical reference point for borrowers as it directly affects the cost of borrowing.