loan interest rate: Banks hike MCLR on loans: SBI vs BOB vs Axis Bank vs Kotak Mahindra Bank loan interest rate comparison


Many banks such as SBI, Axis Bank, Bank of Baroda, and Kotak Mahindra Bank have started increasing the marginal cost of funds based lending rate (MCLR) on loan.

When MCLR increases, borrowers’ interest payments will usually increase. Existing borrowers’ EMIs will be affected when their loan reset dates arrive due to the increase in the MCLR.

Now, let us compare and see which bank is offering lowest after the hike.

SBI

The State Bank of India (SBI) recently announced a ten-basis-point increase in the marginal cost of lending rate (MCLR) on loans. The tenor-based MCLR interest rates go into effect on April 15, 2022.

According to the SBI website, the overnight, one-month, three-month, and six-month MCLR rates have all been raised by 10 basis points to 6.75 percent, 6.75 percent, 6.75 percent, and 7.05 percent, respectively. Similarly, MCLR for tenor of one year stands at 7.10 percent, two year at 7.30 percent and three years at 7.40 percent.

Bank of Baroda

BoB has increased the marginal cost of funds-based lending interest rates on loans by 0.05 percent with effect from April 12, 2022. The overnight, one-month, three-month, and six-month marginal cost of funds-based MCLR rates of Bank of Baroda have all been raised by 0.05 percent to 6.50 percent, 6.95 percent, 7.10 percent, and 7.20 percent, respectively. Similarly, MCLR for tenor of one year stands at 7.35 percent, as per the Bank of Baroda’s press release.

Axis Bank

Axis Bank has increased the marginal cost of funds based lending rate (MCLR) on loans, just days after the State Bank of India (SBI) raised it. According to the Axis Bank website, MCLR rates have been hiked by 5 basis points across all tenors. The revised prices will go into effect on April 18, 2022.

The overnight, one-month, three-month, and six-month marginal cost of funds-based MCLR rates of Axis bank have all been raised by 0.05 percent to 7.15 percent, 7.15 percent, 7.25 percent, and 7.30 percent, respectively. Similarly, MCLR for the tenor of one year stands at 7.35 percent, two year at 7.45 percent, and three years at 7.50 percent

Kotak Mahindra Bank

The marginal cost of lending rate (MCLR) of Kotak Mahindra Bank has been updated for all loan tenors. According to the Kotak Mahindra Bank website, the revised new rates will take effect on April 16, 2022.

The most recent overnight MCLR is 6.65 percent, with rates of 6.90 percent, 6.95 percent, and 7.25 percent for one month, three months, and six months, respectively. The one-year, two-year, and three-year rates, respectively, are 7.40 percent, 7.70 percent, and 7.90 percent.



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