Bank of Baroda has raised its marginal costs of funds-based lending rates (MCLR) on loans. The revised prices will come into effect from July 12, 2022, according to a Bank of Baroda filing with the BSE.
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. has also hiked its MCLR by 10 basis points with effect from today. Last week, , 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.