BoM Hikes Lending Rate By 20 Bps, EMIs May Become Costlier
Such revision will make loans linked to MCLR benchmark much costlier. The benchmark one-year MCLR will now be 7.80 per cent from 10 October, as against 7.60 per cent
State-owned Bank of Maharashtra (BoM) increased the marginal cost of funds-based lending rates (MCLR) by 0.20 per cent or 20 basis points across tenors, on 10 October.
Such revision will make loans linked to MCLR benchmark much costlier. The benchmark one-year MCLR will now be 7.80 per cent from 10 October, as against 7.60 per cent.
The one-year rate is considered mostly to correct the consumer loans. Such consumer loans include auto, personal and home loans. The sudden raise by 0.20 per cent each in the range of 7.30 to 7.70 per cent is made in six months tenor MCLRs.
The benchmark rate linked to the repo rate has been affected by the overnight jump. This was increased by half a percentage point to 5.9 per cent in September by the Reserve Bank of India.
Following the State Bank of India (SBI), many other banks have already adjusted their lending rates after the apex bank raised the benchmark interest rate to flat inflation.