State-owned Bank of Maharashtra (BoM) on Monday increased the marginal cost of funds-based lending rates (MCLR) by 20 basis points or 0.20 per cent across the tenure. The revised rates will be effective from 10 October 2022.
The benchmark one-year MCLR will be 7.80 per cent as against 7.60 per cent from Monday.
Mumbai based private banker, IDFC First Bank has also revised its marginal cost of funds based lending rates (MCLR) IDFC First Bank’s base rate is 9.50 per cent with effect from October 8, 2022.
The minimum lending rate or internal benchmark below which a bank is prohibited from lending is known as the marginal cost of funds based lending rate (MCLR).
Amendments will add debt MCLR Benchmark expensive. The one-year rate is used to fix most consumer loans such as auto, personal and home loans.
The overnight to six-month MCLR for Bank of Maharashtra has been increased by 0.20 per cent, which ranges from 7.30 to 7.70 per cent.
The overnight to six-month MCLR for IDFC First Bank ranges from 8.05 to 8.75 per cent.
In response to the adjustment, the bank raised the MCLR for all tenors, and the increase in lending rates aligns with the RBI’s 50 basis points increase in the repo rate to 5.9 per cent.
Several banks, led by the State Bank of India (SBI), have already adjusted their lending rates after the Reserve Bank raised the benchmark interest rate to contain inflation.
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