Kotak Mahindra Bank has revised the marginal cost of lending rate (MCLR) across loan tenors. The revised new rates are effective from April 16, 2022, according to the Kotak Mahindra Bank website.
The latest overnight MCLR is at 6.65% whereas it’s one month, three month and six month MCLR rates are 6.90%, 6.95% and 7.25%, respectively. And the one year, two year and three year rates are at 7.40%, 7.70% and 7.90%, respectively.
Kotak Mahindra Bank MCLR on loans
After the latest revision many types of loans will become more expensive.
The base rate of Kotak Mahindra Bank stands at 7.30% with effect from March 23, 2022.
Banks hike MCLR rates
Recently, Bank of Baroda, State bank of India, and Axis Bank revised their MCLR. While SBI hiked MCLR by 10 basis points, BOB and Axis bank have increased by 5 basis points. The Reserve Bank of India (RBI) kept the policy rates unchanged at its monetary policy meeting on April 8, 2022.
In determining the MCLR, the marginal cost of funds is a critical element. The MCLR will be affected by changes in key rates, such as the repo rate, that affect the marginal cost of funds. The increase in MCLR will be reflected in their EMIs(equated monthly installment) when their home loan reset date arrives.
