How much has MCLR increased?
According to the State Bank of India website, the MCLR has been increased by 10 percent for one year only. As a result MCLR has increased from 8.30 percent to 8.40 percent. On the other hand, overnight MCLR has remained unchanged at 7.85 percent, 1 to 3 months MCLR 8 percent, 6 months MCLR 8.30 percent, 2 years MCLR 8.50 percent and 3 years MCLR 8.60 percent.
What is MCLR?
MCLR is the minimum rate at which banks lend. Its full meaning is Marginal Cost of Funds Based Landing Rate. The Reserve Bank of India introduced the MCLR rate in 2016 to fix interest rates on various types of loans. Customer’s loan EMI is determined by MCLR rate decrease or increase.
Read more news – Bandhan Bank increased the interest rate on FD again! What is the new rate?
Bank of Baroda has also recently raised the MCLR
Apart from the State Bank, the country’s Bank of Baroda also recently increased its MCLR by 35 basis points. The new rates are said to be effective from January 12, 2023. After this hike, overnight MCLR increased to 7.85 percent, 1-month MCLR increased to 8.15 percent, 3-month MCLR increased to 8.25 percent, 6-month MCLR increased to 8.35 percent and 1-year MCLR increased to 8.50 percent.