Bank of Baroda has increased its loan marginal costs of funds-based lending rates (MCLR). According to a statement with the BSE by Bank of Baroda, the new pricing will take effect on July 12, 2022.
After the hike, Bank of Baroda’s one-year MCLR now stands at 7.65%, according to information on the BSE. While its three-month, and six-month rates have been hiked by 10 basis points to 7.35 percent and 7.45 percent, respectively. The one-year MCLR has been raised to 7.65 percent from 7.50 percent, a hike of 15 basis points. The bank's overnight rate and one-month rate have been kept unchanged at 6.80 percent and 7.20 percent, respectively.
For both new and existing borrowers, the increase in MCLR would mean higher loan interest rates.
Union Bank of India has also hiked its MCLR by 10 basis points with effect from today. Last week, ICICI Bank, Bank of India, too, hiked their MCLR on loans.
What is MCLR? The lowest interest rate that banks may charge their clients is a benchmark rate called the "marginal cost of lending rate," or "MCLR." It decides what the lowest interest rate that can be tacked on to a loan is.
