Earlier this month, the repo rate was increased by 25 basis points to 6.50 percent by the Reserve Bank of India. After this, interest rates have been increased by government and non-government banks, due to which the loan has become costlier than before.
Let us inform you, so far State Bank of India, Canara Bank, Central Bank of India, Punjab National Bank, and HDFC Bank like Banks have increased the interest rates.
State Bank Of India
The country’s largest public sector bank State Bank of India (SBI) has increased the MCLR by 10 basis points for all periods. The new rates have come into effect from February 15. After this increase, the overnight MCLR increased from 7.85 percent to 7.95 percent, the one-month MCLR increased from 8.00 percent to 8.10 percent and the one-year MCLR increased to 8.50 percent.
The MCLR has been increased by 5 basis points on February 12 by the government bank Canara Bank. After this, MCLR for overnight has increased to 7.55 percent, MCLR for three months to 7.90 percent, MCLR for six months to 8.30 percent and MCLR for one year to 8.50 percent.
Central Bank of India
From February 9, the Revised Linked Lending Rate (RLLR) has been increased by 25 basis points to 9.35 percent by the Central Bank of India. The MCLR for overnight is 7.50 percent and the MCLR for one year is 8.15 percent.
Punjab National Bank
On February 9, the Revised Linked Lending Rate (RLLR) has also been increased by Punjab National Bank to 9.00 percent. After this increase, the one-month MCLR is 8 percent, and the one-year MCLR is 8.40 percent.
The interest rates were increased by HDFD Bank shortly after the RBI increased the repo rate. After this increase, the MCLR for overnight and one month has increased to 8.60 percent, MCLR for six months to 8.75 percent, MCLR for one year to 8.90 percent, and MCLR for three years to 9.10 percent.
Explain, MCLR is the rate based on which a bank determines the interest rate of a loan given to its customers.