Kotak Mahindra Bank has increased the lending rates. EMI of loan will increase further

The private lender has increased the overnight K-MCLR to 8.25%. At the same time, the rate has been increased to 8.50 per cent for one month. The KMCLR is set at 8.65% for a period of three months and 8.85% for a period of six months. The bank has set the rate at 9.05%, 9.10% and 9.25% for one, two and three year tenures.

Marginal Cost of Funds Based Lending Rate (K-MCLR) for various tenors from March 16, 2023

Overnight – 8.25%

One month -8.50%

3 months -8.65%

6 months -8.85%

One year -9.05%

Two years – 9.10%

Three years -9.25%

The marginal cost of lending rate is the minimum rate at which a bank is allowed to lend money to customers. The financial institution is not allowed to lend money below that rate. The MCLR system established by the Reserve Bank of India provides a floor cap on lending rates for various types of loans.

in addition to Kotak Mahindra BankSeveral other commercial banks have also increased their lending rates after the Reserve Bank of India announced an increase in the benchmark policy rates.

According to a report by India Ratings, system-wide lending rates are set to rise by 100-150 bps in the next fiscal, given the sharp rise in banks’ marginal cost of funds, reserves due to accelerating monetary policy transmission. Bank has increased. Policy rates reduced by 250 bps since last May. lending rate The increase will be mostly in the marginal cost of funds-based lending rate (MCLR) segment of the credit market, it said.

While banks have passed on most of these policy rate hikes to borrowers, when it comes to deposits, they have not been doing the same, which has led to a widening fall in funds, leaving banks with much more than the market. Forced to raise funds. Cost.