|MCLR tenor||Existing||MCLR w.e.f June 7|
MCLR is the minimum rate below which commercial banks cannot lend to its customers. The Reserve Bank of India (RBI), in April 2016 unveiled the concept of MCLR, which sought to remove much of the discretion commercial banks have to set lending rates.
With effect from June 1, country's largest lender State Bank of India (SBI) raised its marginal cost of funds based lending rates (MCLR) by 10 basis points across the tenors.
SBI's lending rates
Existing MCLR (In %)
Revised MCLR (In %)
The last time ICICI Bank, State Bank of India and Punjab National Bank raised their lending rates (MCLR) was in the month of March 2018. During that time, the rate hike took place a day after SBI raised its fixed deposit (FD) interest rates.