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Public sector lender Bank of Baroda has increased its Marginal Cost of Funds Based Lending Rates (MCLR) by 5 basis points. This increase of the bank has come after the increase in the repo rate of RBI by 25 basis points. After this increase in MCLR rate, your home loan, personal loan and auto loan EMI will increase. The increased new interest rates will be applicable from February 12.
Bank increased interest for all tenures
After this increase in MCLR rate, Bank of Baroda’s overnight MCLR rate has increased by 5 basis points from 7.85% to 7.90%. At the same time, the bank’s MCLR rate for 1 year has increased by 5 basis points from 8.15% to 8.20%. On the other hand, the bank’s 3-month MCLR rate has increased from 8.25% to 8.30%, 6-month MCLR rate from 8.35% to 8.40% and 1-year MCLR rate has increased from 8.50% to 8.55%.
What is MCLR rate
Marginal Cost of Funds Based Lending Rate i.e. MCLR rate is the minimum rate at which the bank can lend to the customers. The Reserve Bank of India (RBI) introduced the MCLR rate in 2016 to determine the interest rates for different types of loans. The EMI of the customers is decided by the increase or decrease in the MCLR rate. If any bank increases the MCLR rate, then your loan rates will increase. Whereas if the bank reduces the MCLR rate, then your loan rate will also reduce.
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