Bank of Baroda and Indian Overseas Bank raised their Marginal Cost of Funds Based Lending Rates (MCLR), making loans expensive for customers. Here is a look at the latest loan interest rates.

Indian Overseas Bank
Indian Overseas Bank’s higher MCLRs come into effect from September 10, 2022. According to the bank website, MCLR will be 7.05% for overnight and 7.15% for one month. The three-month and six-month MCLR increases are 7.70% each. The benchmark marginal cost of funds-based lending rate (MCLR) for loans with a one-year maturity has been increased from 7.65 percent to 7.75 percent.

Bank of Baroda

The increased MCLR will come into effect from September 12, 2022, according to Bank of Baroda BSE filing.

The overnight MCLR will be 7.00% and 7.50% for one month. The three-month and six-month MCLR increases are 7.50% and 7.65% respectively. The benchmark marginal cost of funds-based lending rate (MCLR) for loans with a one-year maturity has been increased from 7.80 percent to 7.70 percent.

MCLR impact on loans

A hike in MCLR will impact car, personal and home loans. One of the crucial factors that will affect your EMI is the Marginal Cost of Funds Based Lending Rate (MCLR). As the MCLR rises, borrowers’ interest payments increase as well. When their loan reset dates come around, existing borrowers’ EMIs will change as a result of the rise in the MCLR. The lowest rate at which banks are permitted to lend to their customers is represented by the benchmark interest rate known as the marginal cost of lending rate, or MCLR.