SBI hikes lending rates: Here is how much EMI you will pay

The country's largest lender State Bank of India has raised its marginal cost of funds based lending rate by 10 basis points or 0.1 per cent across all tenures

This move will lead to an increase in EMIs for borrowers. This is the second hike in a month raising the cost by 0.2 per cent with the two consecutive increases

The revision follows an off-cycle rate increase by the Reserve Bank earlier this month. The central bank hiked the repo rate -- at which it lends short term money to banks -- by 0.40 per cent to 4.40 per cent

The lending rate revision by SBI (State Bank of India) is likely to be followed by other banks in the days to come

With the increase, EMIs will go up for those borrowers who have availed loans on MCLR (Marginal Cost of Funds based Lending Rate), not for those, whose loans are linked to other benchmarks

SBI's External Benchmark based Lending Rate (EBLR) is 6.65 per cent, while the Repo-Linked Lending Rate (RLLR) is 6.25 per cent effective April 1

Banks add Credit Risk Premium (CRP) over the EBLR and RLLR while giving any kind of loan, including housing and auto loans

The revised MCLR rate is effective from May 15, as per the information posted on SBI website

With the revision, one-year MCLR has increased to 7.20 per cent from 7.10 per cent earlier