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

Private sector lender, South Indian Bank, has raised the marginal cost of fund-based lending rates by up to 0.20% across different tenors, effective Monday.

The incremental cost of funds-based lending rates (MCLR) applicable for multiple tenors has been revised with effect from June 20, 2022, the South Indian Bank said in a regulatory filing on Saturday.

The benchmark one-year MCLR was revised up to 8.35% from 8.15% previously.

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

The three-month MCLR was also revised up by the same amount to 7.95%.

Other fixed-term loans such as overnight, one-month and six-month loans were increased by 0.15% each within a range of 7.80 to 8.05%, the bank said.

Most banks revised their lending rates after the Reserve Bank of India raised the benchmark policy rate by 0.50% to 4.90% earlier on June 8.

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

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Shawanda H. Saldana