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EMIs to shoot up as public sector bank hikes MCLR rates

Mumbai: The third largest public sector bank in the country, Bank of Baroda (BoB) has hiked the Marginal Cost of funds based on the Lending Rate (MCLR). The lender increased the MCLR by 15 basis points. The new rates will come into effect from July 12.

The one-year MCLR of BoB now stands at 7.65%. The three-month and six-month MCLR rates are at 7.35% and 7.45%, respectively. The lender has did not changed the MCLR of short tenures like overnight and one month. The overnight rate and one-month rate is at 6.80% and 7.20%, respectivelyAlso Read: Indian Railways introduces vistadome coaches in this train

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After this rate hike, the equated monthly instalments (EMIs) of all retail loans including car, personal and home will go up.

MCLR is the minimum rate of interest banks are allowed to give out loans to its customers. It is a benchmark interest rate and it dictates the lower limit of the interest rate for a loan.

Earlier several other banks like ICICI Bank, Indian Overseas Bank and Union Bank had hiked the rates.

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