Axis Bank MCLR Rate Hike: India’s leading private sector lender Axis Bank has increased its marginal cost of lending rate (MCLR), the lender said in a notification last week. marginal cost of lending rate, or MCLRwhich is a key point in fixing various lending rates, has been increased by 5 basis points, axis Bank stated in its notification. The new rates are already effective as per the notification. Here, it should be noted that one basis point is equal to one hundredth of a percentage point. This means that the interest on the loan will increase. Axis Bank MCLR Hike.
Axis Bank’s new MCLR rates have become effective from August 18. With the latest hike in MCLR rates, Axis Bank’s overnight and one-month MCLR rate now stands at 7.85 per cent. Earlier it was 7.80 per cent. The MCLR for three months has been increased from 7.90 percent to 7.95 percent, while the MCLR rate of Axis Bank has been increased from 7.95 percent to 8.00 percent for six months. Similarly, MCLR for one year has been increased from 8.00 per cent to 8.05 per cent. The MCLR for two years has increased from 8.10 per cent to 8.15 per cent. The prime lending rate has been increased from 8.15 per cent to 8.20 per cent for a tenure of three years.
According to the Axis Bank website, the MCLRs for the period with effect from August 18, 2022 are as follows:
Overnight: Old rate – 7.80 percent; New rate – 7.85 percent
One month: Old rate – 7.80 percent; New rate – 7.85 percent
Three months: Old rate – 7.90 per cent; New rate – 7.95 percent
six months: chronic rate – 7.95 percent; New rate 8.00 percent
One year: Old rate – 8.00 percent; New rate 8.05 percent
Two-year old rate – 8.10 per cent; New rate 8.15 percent
three-year old rate – 8.15 percent; New rate 8.25 percent
Axis Bank MCLR rate hike comes two weeks after RBI India In its bi-monthly MPC meeting in early August, it raised the repo rate by 50 basis points. This was done to control the rising inflation in the country. Following the hike in repo rates, major private and public sector banks joined in to increase their MCLR.
MCLR or marginal cost of lending rate is a benchmark interest rate, which is the minimum interest rate that banks are allowed to lend to their customers. This rate range is set in stone for the borrowers unless otherwise specified by the Reserve Bank of India. With the increase in MCLR, home and other borrowers of Axis Bank may not be happy as the interest is most likely to rise. The MCLR will continue to rise further as the hike in the repo rate has increased the cost of funds for banks.
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