Mumbai: Another nationalised bank in the country has hiked the marginal cost of fund-based lending rate (MCLR). Bank of India has hiked the overnight, 6-month, and 1-year lending rates by 5-10 basis points. The new rates will come in effect from September 1.
Due to this hike, the equated monthly instalments (EMIs) for a variety of consumer loan products including car, personal and home will go up.
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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.
The overnight MCLR has now increased by 5 basis points (bps) to 6.85%. The six-month MCLR has increased by 10 bps to 7.45% and the 1-year MCLR has been revised to 7.60%. The remaining MCLR terms are unaffected.
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