HDFC Bank, ICICI Bank, and Canara are among five banks that have hiked lending rates this month. Check full list here
Banks have been hiking lending rates. The public sector lender Canara Bank has hiked home loan rates and other loan rates with effect from 12 August. In August, top banks in India, including HDFC Bank, ICICI Bank, Bank of Baroda, and Bank of India increased their marginal cost of funds-based lending rate(MCLR).
After the latest hike, Canara Bank's overnight MCLR stands at 7.95%, while the one-month MCLR is 8.05% .The six-month MCLR is 8.50, while the three-month MCLR is 8.15%. The bank's MCLR for a 1-year tenor is 8.70%.
“The above MCLRs shall be applicable only to new loans/advances sanctioned/first disbursement made on or after 12.03.2023 and those credit facilities renewed/reviewed / reset undertaken and where switchover to MCLR linked interest rate is permitted at the option of the borrower, on or after 12.03.2023. The above MCLRs will be effective till the next review," said Canara Bank in a statement.
It's true that a rise in bank interest rates will impact directly the new loan borrowers. When banks hike interest rates on their retail loans, they usually increase the tenure of the loan instead of monthly EMI.
HDFC Bank has hiked benchmark marginal cost of funds-based lending rates (MCLR) by 15 basis points (bps) on select tenures with effect from 7 August. However, MCLRs for tenures longer than one year remain unchanged.
Bank of Baroda (BoB) has hiked its benchmark lending rates by 5 basis points (bps) on various tenures. The new rates will come into effect from August 12th.
ICICI Bank, Punjab National Bank, and Bank of India have revised their marginal cost-based lending rate (MCLR) on loans. The revised interest rates are effective from 1 August, as per the bank websites. The new interest rates are effective
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