Private sector banks, Axis Bank and Kotak Bank have become the latest banks to increase their lending rates based on the marginal cost of lending rate (MCLR).
Bank of Baroda was the first bank to hike MCLR-based lending rate, and then SBI followed suit. Now, Kotak Bank and Axis Bank have also increased their lending rates.
Private sector banks, Axis Bank and Kotak Bank have become the latest banks to increase their lending rates based on the marginal cost of lending rate (MCLR).
Bank of Baroda had last week increased the marginal cost of lending rate by 0.05 per cent. They were followed by State Bank of India, India’s largest bank, which increased its MCLR on loans by 0.1 per cent.
MCLR rate is the minimum rate at which banks can offer their loan products to customers. Thus, when the MCLR rate increases, the floating rate as well as all loans benchmarked to the MCLR rate increases. So, new borrowers would now have to pay more interest to borrow funds, and existing borrowers will have to pay more on their equated monthly instalments (EMIs) on loan once their loan date reset arrives.
Here is A Comparison of the Rate of Interest Across Different Banks:
Kotak Mahindra Bank
Kotak Mahindra Bank has updated their latest MCLR for all loan tenors on their website. According to the bank, the updated rates will take effect from April 16, 2022 onwards. For ready reference, they rates are given below:
Overnight: 6.55 per cent
One Month: 6.9 per cent
Three Months: 6.95 per cent
Six Months: 7.25 per cent
One Year: 7.4 per cent
Two Years: 7.7 per cent
Three Years: 7.9 per cent
Axis Bank
Axis Bank has increased the marginal cost of funds-based lending interest rates on loans by 0.05 per cent with effect from April 12, 2022. The updated rates are available on their website. For ready reference, the rates are given below:
Overnight: 7.15 per cent
One Month: 7.15 per cent
Three Months: 7.25 per cent
Six Months: 7.3 per cent
One Year: 7.35 per cent
Two Years: 7.45 per cent
Three Years: 7.5 per cent
Bank of Baroda
Bank of Baroda was the first bank to increase their marginal cost of funds-based lending interest rates on loans. In a stock exchange filing, they stated to increase the lending rates by 0.05 per cent with effect from April 12, 2022. For ready reference, the rates are given below:
Overnight: 6.5 per cent
One Month: 6.95 per cent
Three Months: 7.10 per cent
Six Months: 7.2 per cent
One Year: 7.35 per cent
State Bank of India
State Bank of India has increased the marginal cost of funds-based lending interest rates on loans by 0.1 per cent with effect from April 15, 2022. The updated rates are available on their website.
For ready reference, the rates are given below:
Overnight: 6.75 per cent
One Month: 6.75 per cent
Three Months: 6.75 per cent
Six Months: 7.05 per cent
One Year: 7.1 per cent.
Two Years: 7.3 per cent
Three Years: 7.4 per cent