The Reserve Bank of India (RBI) suddenly increased the repo rates, all the banks in the country started shocking their customers one after the other. All the big banks have increased the marginal cost of funds based lending rate (MCLR).
In this list, from SBI to HDFC Bank and from Bank of Baroda to Yes Bank, the burden has increased on all customers. That is, every loan from home, auto to personal has become expensive.
Effect of hike in MCLR:
First let us understand what is MCLR and how does it affect. So let us tell you that this rate (MCLR) has been started by the Reserve Bank of India (RBI). When this rate is fixed, no bank can give loan to its customers at a rate lower than this.
Banks usually provide loans at a higher rate than this. An increase in this rate also makes the loan costlier and the EMI also increases.
Bank of Baroda gave a blow:
The most recent increase has been made by the public sector Bank of Baroda (BoB). BoB on Tuesday increased its lending rates by 0.10 per cent amid a hike in the policy repo rate.
In the information given by the bank to the stock exchanges, it has been told that the increase in MCLR on loans based on various time periods will have an effect and the increased rates will be considered effective from May 12.
Taking loan from HDFC is expensive:
HDFC Bank has increased the marginal cost based lending rate (MCLR) by 0.25 per cent or 25 basis points for various tenors. The new rates have come into effect from May 7. After the increase, the one-year MCLR has been revised to 7.50 per cent. For one day tenor, the MCLR is 7.15 per cent.
SBI increased by 0.10 percent:
State Bank of India had also increased the MCLR by 10 basis points, giving a shock to the customers on Monday. These increased rates are considered effective from April 15.
After this change, the LCLR rates for a period of one night to three months will be 6.75 percent from 6.65 percent. At the same time, the increase for six months will be 7.05 and for one year the MCLR will be 7.10 percent. With this increase for two and three years, the MCLR will be 7.30 and 7.40 per cent, respectively.
Canara-Axis Bank hikes rates:
Canara Bank has increased the Repo Rate Linked Rates (RLLR) to 7.30 per cent. These new rates have been implemented from May 7. Apart from this, Canara Bank has also increased the MCLR rates to 7.35 per cent.
The bank said that the new rates would be applicable to new customers. This will have no effect on old customers. Apart from this, Axis Bank has also increased the MCLR by five basis points. These rates have come into effect from April 18.
Bank of Maharashtra took steps:
The name of Bank of Maharashtra is also included in the list of banks increasing the debt burden on their customers. The bank has increased the MCLR for all tenors by 0.15 percent. With this the new rate has increased to 7.40 percent, which is applicable from May 7.
Now the one year MCLR rate has increased from 7.25 to 7.40%. The rate of other term loans will be in the range of 6.85-7.30 per cent. Apart from this, Karur Vysya Bank has also increased the interest rate from 7.15 percent to 7.45 percent.
Loan became expensive here too:
Indian Overseas Bank has also increased the interest rate linked to the repo rate to 7.25 percent. According to the information shared by this bank, the new rates are applicable from May 10. Now customers will get loan at the same rate.
Apart from this, Yes Bank has also increased the marginal cost of loan rates i.e. MCLR by 10-15 basis points for all loan tenures in the past. The growth of Air Bank has become effective from May 2, 2022.
The post Expensive to take loan: SBI to HDFC increased MCLR so much appeared first on Spotlight 7.
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