Get ready to pay more EMI ... These banks have hiked MCLR rates

New Delhi: 

Major banks including State Bank of India (SBI), Bank of Baroda, Axis Bank and Kotak Mahindra Bank have increased their prime loan rates by up to 0.1 per cent. Due to this, the monthly installment (EMI) of home loan, car loan and personal loan will increase. These banks have hiked the benchmark lending rates after nearly three years. It is believed that other banks may also take similar steps.

The country’s largest bank SBI has increased the marginal cost of funds based lending rate (MCLR) by 0.1 percent. The bank has increased the loan rate from 7 per cent to 7.10 per cent for a period of one year. According to the information given on SBI’s website, the revised MCLR rate is effective from April 15. 

The one-day, one-month and three-month MCLR increased by 0.10 per cent to 6.75 per cent, while the six-month MCLR increased to 7.05 per cent. Most of the loans are linked to the one-year MCLR rate. Similarly, the two-year MCLR rose by 0.1 per cent to 7.30 per cent and the three-year MCLR by 0.1 per cent to 7.40 per cent.

Bank of Baroda (BOB), Axis Bank and Kotak Mahindra Bank have also increased the one-year MCLR. BoB has increased the MCLR to 7.35 per cent for a period of one year, with effect from April 12.

EMI of loans linked to MCLR will increase

After this decision, those who have taken a loan on MCLR, their EMI will increase slightly. However, for those who have taken loans based on other parameters, their EMIs will not be affected. SBI’s EBLR (External Standard Based Lending Rate) is 6.65 per cent, while the Repo Linked Lending Rate (RLLR) is 6.25 per cent. This rate is effective from April 1. Banks add credit risk premium (CRP) to EBLR and RLLR while granting any type of loan including housing and vehicle loans.


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