The marginal cost of lending rate (MCLR) is the lowest lending rate. No bank is allowed to make a loan interest rate offer below this. Here is a comparison of lending rates of banks in the month of October 2023.
The changes in MCLR, will make EMIs linked to MCLR expensive. Most of the banks one year MCLR is linked to consumer loans. Here is a look at the latest MCLR rates of the Bank of Baroda, Canara Bank and Bank of Maharashtra.
Bank of Maharashtra, a state-owned bank, has increased its marginal cost of funds-based lending rate (MCLR) by 10 basis points for select tenures. The benchmark one-year MCLR has been revised to 8.60% from 8.70%. Additionally, the bank has raised its fixed deposit rates by up to 125 basis points.
The MCLR-based rates will now range between 8% and 8.75%. The bank revised Benchmark Prime Lending Rate to 14.95% from 14.85%, effective from September 15, 2023.