Other banks raising interest rates following SBI; Which loan is going to have the highest EMI? | banks increase MCLR lending rate

State Bank of India has hiked interest rates on loans by 10 basis points, or 0.1 per cent. SBI, which has not raised interest rates in the last three years, has now raised them. Following this, other public sector banks and private sector banks are likely to raise interest rates on loans.

SBI is one of the largest banks in the country. Other private sector banks also follow SBI Bank in setting interest rates.

SBI Bank sets interest rates based on the MCLR or Marginal Cost of Funds introduced by the Reserve Bank in April 2016.

Accordingly, it has raised interest rates on all-term loans by 10 basis points, or 0.1 per cent.