Bank of Baroda and Union Bank of India have increased their marginal costs of funds-based lending rates (MCLR) on loans. Since the Reserve Bank of India (RBI) began increasing the repo rate in May 2022, banks have been hiking loan interest rates as well. The RBI in its latest monetary policy meeting, on February 8, 2023, hiked the repo rate by another 0.25%.

Bank of Baroda
Bank of Baroda has raised its marginal cost of funds-based lending rates (MCLR) by 5 basis points across all tenures. The new rates will be effective from February 12, 2023.

The overnight MCLR rate was increased to 7.90% from 7.85% earlier, while the one-month MCLR rate was increased to 8.20% from 8.15%. The three-month MCLR is now 8.30 percent. The six-month MCLR has been changed from 8.35 to 8.40 percent, according to BoB. The bank’s new rate is raised to 8.55 percent from 8.50 percent for one-year maturity.

Union Bank of India
Union Bank of India has raised its marginal costs of funds-based lending rates (MCLR) across the board. The revised interest rates will be effective between February 11 , 2023 and March 10, 2023, according to the bank’s website. The bank’s EBLR stands at 9.30% effective from February 11, 2023.

After the hike, the Union Bank of India’s overnight MCLR rate has increased to 7.90 percent, while its one-, three-, and six-month rates have changed to 8.05 percent, 8.25 percent, and 8.45 percent, respectively. Three-year MCLR is 9 percent, two-year MCLR is 8.85 percent, and one-year MCLR is 8.65 percent.