New Delhi: Indian Overseas Bank (IOB) has increased the Marginal Cost of Funding Based Lending Rate (MCLR) for all tenors. The new MCLR rates will be applicable from today i.e. January 10, 2023.
Indian Overseas Bank Marginal Cost of Funds-based Lending Rates (MCLR) effective from today:
| Senior well. | elements | Existing MCLR % w.e.f. 10.12.2022 | change | Revised MCLR % w.e.f. 10.01.2023 |
|---|---|---|---|---|
| 1 | MCLR overnight | 7.65 | 0.05 | 7.70 |
| 2 | one month MCLR | 7.70 | 0.05 | 7.75 |
| 3 | 3 month MCLR | 8.00 | 0.05 | 8.05 |
| 4 | 6 month MCLR | 8.15 | 0.05 | 8.20 |
| 5 | one year MCLR | 8.25 | 0.05 | 8.30 |
| 6 | 2 year MCLR | 8.35 | 0.05 | 8.40 |
| 7 | 3 year MCLR | 8.40 | 0.05 | 8.45 |
IOB said that the loan interest rate for overnight tenor MCLR and one month MCLR will be approved by the top management at the central office only. It further clarified that the authority to sanction overnight and one month MCLR is not available with any other functionary.
Several banks and lenders have revised their lending rates after the Reserve Bank of India hiked its benchmark lending rates on December 7. The RBI Monetary Policy Committee headed by Governor Shaktikanta Das has increased the repo rate by 35 basis points to 6.25 per cent on December 7. Repo is the rate at which the Reserve Bank of India lends money to commercial banks when needed. It is a tool that the central bank uses to control inflation. This is the third hike since the beginning of the current financial year, with the rate returning to pre-pandemic levels to ease inflationary pressures.