Mumbai: Leading private sector bank in the country, Kotak Mahindra Bank increased the marginal cost of funds-based lending rate (MCLR) for several loan sectors across. The MCLR rates were increased by 10 to 30 basis points (bps).
The lowest interest rate that a bank can impose on a loan is known as the MCLR (Marginal Cost of Funds Based Landing Rate). Under the MCLR regime, banks are allowed to provide any loan at either a fixed or floating interest rate. As a result, the bank will not provide loans at a rate less than the MCLR for that specific maturity.
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The Marginal Cost of Funds based Lending Rate (K-MCLR) for an overnight tenor is 8.15% and 8.40% for a tenor of 1 month. For a tenor of 3 months, the MCLR stood at 8.55%, and 8.75% for a tenor of 6 months. The 1-year MCLR is 8.95% and the 2-year MCLR is now at 9.00%, whereas the 3-year MCLR is 9.55%, according to the bank.
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