Latest loan interest rates of Bank of Baroda and Canara bank
By Lokmat English Desk | Published: June 13, 2023 04:20 PM2023-06-13T16:20:33+5:302023-06-13T16:20:33+5:30
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Customers of Bank of Baroda and Canara Bank have been hit hard. Both the banks have increased the loan interest rates for selected periods.
Both the banks have revised the MCLR rates. In such a situation bank loan holders will now have to pay higher EMIs. So new customers will have to take loans at expensive rates.
Bank of Baroda has revised Fund Based Lending Rate (MCLR). The bank has hiked rates by 5 basis points over a one-year period. Whereas, MCLR rates for other tenures have been kept unchanged.
Bank has implemented new rates from 12th June 2023. Bank of Baroda has raised MCLR to 7.95 per cent for the night period. MCLR for banks for one month, three months and six months is 8.20 per cent, 8.30 per cent and 8.40 per cent respectively. MCLR 8.60 Tk over a period of one year.
Canara Bank has kept Fund Based MCLR unchanged. According to Canara Bank's website, the overnight MCLR rate is now 7.90 per cent, while its one-month, three-month and six-month MCLR rates are 8.00 per cent, 8.15 per cent and 8.45 per cent respectively.
The bank's MCLR is 8.65 percent on a one-year tenure. According to the Canara Bank website, the new rates will be applicable only to new accounts opened on or after June 12, 2023 and accounts that complete 3 years under the RLLR on or after June 12, 2023.
MCLR is the basic minimum rate on the basis of which banks lend to customers. It is also called marginal cost of borrowing rate. MCLR was established by the Reserve Bank of India (RBI) in 2016 with the objective of fixing interest rates on various types of loans.
It acts as a benchmark rate for banks to use when lending at fair and open interest rates. Any change in MCLR by the bank also affects the cost of loan i.e. interest rate.
Due to this decision, the customers of Canara Bank and Bank of Baroda will now get a shock.
