Over the past one week, many banks including State Bank of India (SBI), Bank of Baroda, Axis Bank, Kotak Mahindra Bank and IndusInd Bank have hike their marginal cost of funds-based lending rate (MCLR) on loans.
As the banks start increasing these rates, your EMIs on home loan, personal loan and auto loan are set to increase as well.
Also other banks are expect to follow the cue soon, even as the Reserve Bank of India kept its repo rate unchange during its bi-monthly monetary policy committee (MPC) meet.
What is MCLR?
MCLR or marginal cost of lending rate is a benchmark interest rate, which is the minimum rate of interest banks are allow to give out loans to its customers.
It was introduce by the RBI in 2016 to ensure better pricing of floating rate loans to customers.
How Does MCLR Affect Loans?
A higher MCLR rate means that the borrowers’ interest payment also rises.
This applies to existing as well as fresh borrowers.
The interest rate for existing borrowers will increase when the loan reset date comes due to hike in MCLR.
Comparison of MCLR Rate
As we said, many banks have increase their MCLR rates in the past one week.
SBI MCLR Rate
Over night:
Old rate — 6.65%
New rate — 6.75%
One Month:
Old rate — 6.65%
New rate — 6.75%
Three Month:
Old rate — 6.65%
New rate — 6.75%
Six Month:
Old rate — 6.95%
New rate — 7.05%
One Year:
Old rate — 7.00%
New rate — 7.10%
Two Years:
Old rate — 7.20%
New rate — 7.30%
Three Years:
Old rate — 7.30%
New rate — 7.40%
Bank of Baroda MCLR Rate
Over Night:
Old rate — 6.45%
New rate — 6.50%
One Month:
Old rate — 6.90%
New rate — 6.95%
Three Month:
Old rate — 7.05%
New rate — 7.10%
Six Month:
Old rate — 7.15%
New rate — 7.20%
One Year:
Old rate — 7.30%
New rate — 7.35%
Kotak Mahindra Bank MCLR Rate
Over night:
Old rate — 6.60%
New rate — 6.65%
One Month:
Old rate — 6.85%
New rate — 6.90%
Three Month:
Old rate — 6.90%
New rate — 6.5%
Six Month:
Old rate — 7.20%
New rate — 7.25%
One Year:
Old rate — 7.35%
New rate — 7.40%
Two Years:
Old rate — 7.65%
New rate — 7.70%
Three Years:
Old rate — 7.85%
New rate — 7.90%
Axis Bank MCLR Rate
Over night:
Old rate — 7.10%
New rate — 7.15%
One Month:
Old rate — 7.10%
New rate — 7.15%
Three Month:
Old rate — 7.20%
New rate — 7.25%
Six Month:
Old rate — 7.25%
New rate — 7.30%
One Year:
Old rate — 7.30%
New rate — 7.35%
Two Years:
Old rate — 7.40%
New rate — 7.45%
Three Years:
Old rate — 7.45%
New rate — 7.50%
