MCLR Rate Hike: Over the past one week, several banks including State Bank of India (SBI), Bank of Baroda, Axis Bank, Kotak Mahindra Bank and IndusInd Bank have hiked 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. Not only this, other banks are expected to follow the cue soon, even as the Reserve Bank of India kept its repo rate unchanged during its bi-monthly monetary policy committee (MPC) meet.
What is MCLR and How Does it Affect Loans?
MCLR or marginal cost of lending rate is a benchmark interest rate, which is the minimum rate of interest banks are allowed to give out loans to its customers. It was introduced by the RBI in 2016 to ensure better pricing of floating rate loans to customers. 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.
MCLR Rate Comparison
As mentioned earlier, several banks have increased their MCLR rates in the past one week. Let us compare the rates now:
SBI MCLR Rate
Over night: Old rate — 6.65 per cent; New rate — 6.75 per cent
One Month: Old rate — 6.65 per cent; New rate — 6.75 per cent
Three Month: Old rate — 6.65 per cent; New rate — 6.75 per cent
Six Month: Old rate — 6.95 per cent; New rate 7.05 per cent
One Year: Old rate — 7.00 per cent; New rate 7.10 per cent
Two Years: Old rate — 7.20 per cent; New rate 7.30 per cent
Three Years: Old rate — 7.30 per cent; New rate 7.40 per cent
Bank of Baroda MCLR Rate
Over Night: Old rate — 6.45 per cent; New rate — 6.50 per cent
One Month: Old rate — 6.90 per cent; New rate — 6.95 per cent
Three Month: Old rate — 7.05 per cent; New rate — 7.10 per cent
Six Month: Old rate — 7.15 per cent; New rate 7.20 per cent
One Year: Old rate — 7.30 per cent; New rate 7.35 per cent
Kotak Mahindra Bank MCLR Rate
Over night: Old rate — 6.60 per cent; New rate — 6.65 per cent
One Month: Old rate — 6.85 per cent; New rate — 6.90 per cent
Three Month: Old rate — 6.90 per cent; New rate — 6.5 per cent
Six Month: Old rate — 7.20 per cent; New rate 7.25 per cent
One Year: Old rate — 7.35 per cent; New rate 7.40 per cent
Two Years: Old rate — 7.65 per cent; New rate 7.70 per cent
Three Years: Old rate — 7.85 per cent; New rate 7.90 per cent
Axis Bank MCLR Rate
Over night: Old rate — 7.10 per cent; New rate — 7.15 per cent
One Month: Old rate — 7.10 per cent; New rate — 7.15 per cent
Three Month: Old rate — 7.20 per cent; New rate — 7.25 per cent
Six Month: Old rate — 7.25 per cent; New rate 7.30 per cent
One Year: Old rate — 7.30 per cent; New rate 7.35 per cent
Two Years: Old rate — 7.40 per cent; New rate 7.45 per cent
Three Years: Old rate — 7.45 per cent; New rate 7.50 per cent
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