In August, leading banks have dealt a big blow to borrowers. These banks have increased marginal cost of funds based lending rates. Even before the Reserve Bank of India’s decision on the repo rate, some banks had announced an increase in lending.
The RBI’s August 8-10 monetary policy meeting decided to keep the repo rate unchanged, following which some banks have hiked lending rates. Here are the banks that have increased the loan interest by how much.
Bank of Baroda made loans more expensive.
The public sector bank has increased the benchmark lending rate by 5 basis points for all tenors. This new rate is effective from August 12, 2023. The decision by the bank comes a day after the RBI meeting. Following this increase by the bank, the MCLR rate has risen to 8% for one year and 8.70% overnight.
Loan from HDFC Bank
HDFC Bank has increased the benchmark Marginal Cost of Fund Based Lending Rates (MCLR) by 15 basis points. This increase has been made for some selected periods. The new rate will be effective from August 7, 2023. Now the interest has been reduced to 8.35% for overnight and 9.20% for three years.
ICICI Bank Loan
ICICI Bank has increased MCLR by 5 basis points for all tenors. According to ICICI Bank’s website, the overnight and one-month MCLR has increased to 8.40 percent from 8.35 percent. MCLR for three months and six months has been increased to 8.45 percent and 8.80 percent. Similarly, the MCLR for one year has become 8.90 percent.
Bank of India
This bank has increased the MCLR for only a few periods. According to the bank’s website, overnight rate is 7.95 per cent, MCLR for one year is 8.15 per cent. 8.30 percent for three months and 8.50 percent for six months. MCLR for one year is 8.70%.
Canara Bank
Canara Bank has increased the MCLR by five basis points, the bank said in its filing. This new rate will be effective from August 12, 2023. Here the MCLR rate for overnight is 7.95 percent, MCLR for six months is 8.5 percent and MCLR for one year is 8.7 percent.
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