Soon after the State Bank of India (SBI) hiked the marginal cost of funds based lending rate (MCLR), Axis Bank has also announced that it has increased MCLR on loans. According to the Axis Bank website, MCLR rates across tenors have been raised by 5 basis points. The new rates are effective from April 18, 2022.
The overnight, one-month, three-month, and six-month marginal cost of funds-based MCLR rates of Axis bank have all been raised by 0.05 percent to 7.15 percent, 7.15 percent, 7.25 percent, and 7.30 percent, respectively. Similarly, MCLR for the tenor of one year stands at 7.35 percent, two year at 7.45 percent, and three years at 7.50 percent.
Axis Bank MCLR rates
Axis Bank also stated that the effective base rate stands at 8.45% w.e.f. from 23rd September 2021.
More banks hike MCLR rates
Public-sector lender Bank of Baroda raised its MCLR by 5 basis points, effective April 12. The State Bank of India (SBI) announced a ten-basis-point increase in loans. The tenor-based MCLR interest rates go into effect on April 15, 2022.
A rise in the MCLR will typically result in an increase in interest due by borrowers. The increase in the MCLR will affect existing borrowers’ EMIs when their loan reset dates arrive.