Bank of Baroda Hikes MCLR: There is useful news for the users of Bank of Baroda. After increasing the repo rate of the Reserve Bank, now Baroda Bank has given a shock to its customers. Loan interest rate has been increased. Bank of Baroda has increased the MCLR of different periods by 25 to 30 basis points i.e. 0.25 to 0.30 per cent. The new rates of the bank will be applicable from 12 December 2022.
In fact, recently the Reserve Bank of India had announced an increase of 0.35 per cent in the repo rate on December 7, since then all the banks have started increasing the marginal cost based lending rate. After HDFC Bank, Bank of India and Indian Overseas Bank, now public sector Bank of Baroda has increased its MCLR by 25 to 30 basis points for different periods. Means there has been an increase of 0.25 to 0.30 percent.
In such a situation, an increase in MCLR can make personal loans, auto and home loans costlier. After this increase, now taking loan from the bank will become expensive. However, if you have already taken a loan, then this increase will not be applicable on it. The new rates will be applicable only after taking a new loan or making changes to the application.
After the new rates, now Bank of Baroda has increased the interest for overnight tenure from 7.25% to 7.5%, for one month tenure from 7.70% to 7.95%, MCLR for 3 months tenure increased from 7.75% to 8.05%, 6 months tenure But MCLR has been increased from 7.90% to 8.15% and loan interest on 1 year tenure has been increased from 8.05% to 8.3%.
What is MCLR
MCLR is a methodology developed by the Reserve Bank of India based on which banks determine the interest rate for loans. Before that, all the banks used to fix the interest rate for the customers on the basis of base rate only.