Latest Bank of Baroda, Canara Bank loan interest rates
The Reserve Bank of India has raised the repo rate by 250 basis points since May 2022.
In the face of strengthening macroeconomic conditions, the RBI has so far maintained the status quo on interest rates. The changes in MCLR, will make EMIs linked to MCLR expensive.
Bank of Baroda
Bank of Baroda revised its latest marginal cost of funds-based lending rates (MCLR). These rates are kept unchanged from previous rates. The rates will be effective from September 12, 2023
The bank's overnight marginal cost of funds-based lending rate (MCLR) will be 8% as of August 12. For one-month, three-month, and six-month terms, BoB applies 8.25%, 8.35%, and 8.45% MCLR, accordingly.
Canara Bank
Canara Bank revised its latest marginal cost of funds-based lending rates (MCLR). The rates will be effective from September 12, 2023. These rates are kept unchanged from previous rates.
The one-month MCLR rate stands at 8.05%. The three-month MCLR rate at 8.15 percent. Furthermore, the bank offers six-month MCLR rate at 8.5% The year-on-year MCLR rate to 8.7 percent.
According to the bank website, “Rates of Interest of all Retail Lending Schemes are linked to REPO LINKED LENDING RATE (RLLR) OF THE BANK – 9.25%* w.e.f 12.09.2023.”
Impact of MCLR
Only bank customers whose interest rates are still based on the MCLR will be affected. Banks must link the interest rates on their loans to an external benchmark, such as the repo rate, a three- or six-month Treasury bill, or another, beginning October 1, 2019.
If a loan is
