hike MCLR: The three big public sector banks of the country have given a big shock to the customers in the month of August by announcing an increase in the Marginal Cost of Fund Based Lending Rate. Bank of Baroda, Canara Bank, and UCO Bank have increased the MCLR by 5 basis points.
All three banks have given a big shock to their customers. Actually, Canara Bank has disclosed a 0.05 percent increase in the marginal cost of fund-based lending rate for all tenures. This means that now taking a loan from Canara Bank is going to be much more expensive for the customers than before.
For your information, let us tell you that the new rates of Canara Bank will be implemented from August 12, 2024. After the increase in MCLR, you will have to pay more EMI than before on taking a loan. Now it is going to have a direct impact on the pockets of the customers.
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Canara Bank MCLR rates
Canara Bank has said that the MCLR for a period of one year will now be 9 percent after the increase. Currently it is 8.95 percent. The MCLR for three years will be 9.40 percent, while for a period of 2 years, the MCLR has been increased by 0.05 percent to 9.30 percent.
Bank of Baroda’s MCLR rates
Bank of Baroda has changed the MCLR for some period from August 12. UCO Bank’s Asset Liability Management Committee will increase the lending rate by five basis points for some period effective from August 10.
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The revised MCLR for one-year loans has been increased from 8.9 percent to 8.95 percent. BOB’s cost of deposits increased from 4.68 percent in the quarter ended June 2023 (Q1 FY24) to 5.06 percent in the quarter ended June 2024 (Q1 FY25).
What is MCLR?
MCLR is a benchmark interest rate. According to this, all banks give many loans to their customers, including home loans and auto loans. Banks do not allow loans at interest rates lower than this rate.
