Mumbai-based private sector lender, DCB Bank on Friday increased its marginal cost of funds based lending rate (MCLR) by 23 basis points. The new interest rates will be applicable from June 6. With the benchmark lending rate hiked, EMIs on term loans are expected to go up further.
In its regulatory filing, the bank disclosed that a year MCLR It will be 9.46% from June 6 as against the current rate of 9.23%.
The three-month and six-month MCLR has been hiked to 9.21% and 9.41% as against the current charge of 8.98% and 9.18% respectively.
The one-month and overnight MCLR will be 8.51% each from June 6 as against the current 8.28%.
Close on DCB Bank shares 85.50 each on the BSE, down 2.95%.
MCLR is the benchmark rate below which lenders are not allowed to lend. Most of the banks do not offer rates on term loans below MCLR. However, many banks have linked term loans like home loans and personal loans to external benchmark lending rates.
A new generation private sector bank, DCB Bank has more than 400 branches across India. It is professionally managed and governed. DCB Bank has contemporary technology and infrastructure, which includes state-of-the-art Internet Banking for personal and business banking customers.