Public sector lender Bank of Baroda has hiked its MCLR rates by 10 to 15 basis points, which will come into effect from July 12, Tuesday.
Bank of Baroda MCLR Rate Hike: Public sector lender Bank of Baroda has hiked its MCLR rates for certain tenures, it said on Monday, July 4. The bank has approved the revision in Marginal Cost of funds based Lending Rate (MCLR) with effect from July 12, 2022, Bank of Baroda said in a regulatory filing on Monday. The Bank of Baroda MCLR hike will mean that borrowers at the bank will have to shell out more money to pay their loan interests, including home loans, car loans and personal loans among others.
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“We advise that the Bank has approved the revision in Marginal Cost of Funds Based Lending Rate (MCLR) w.e. f. 12th July 2022,” said the Bank of Baroda in the regulatory filing on the day. “We request you to take note of the above pursuant to Regulation 30 of SEBI (LODR) Regulations, 2015 and upload the information on your website,” it added.
Bank of Baroda MCLR rates for overnight and one month have been kept unchanged, the lender said in the regulatory filing. For a tenure of three months, Bank of Baroda MCLR rates have been hiked to 7.35 per cent, which a 10 basis points increase from the earlier 7.25 per cent For tenures of six months the Bank of Baroda MCLR rates are 7.45 per cent, up from the earlier 7.35 per cent, also hiked by 10 bps. The one year Bank of Baroda MCLR, the benchmark for most of consumer loans such as auto, home and personal loans, has been revised upwards to 7.65 per cent from the existing 7.50 per cent, which is a hike of 15 basis points.
Here are the tenor-wise MCLR effective from July 12, 2022, as per the Bank of Baroda regulatory filing:
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Over night MCLR: Existing rate — 7.50 per cent; New rate — 7.70 per cent
One Month MCLR: Existing rate — 7.55 per cent; New rate — 7.75 per cent
Three Month MCLR: Existing rate — 7.60 per cent; New rate — 7.80 per cent
Six Month MCLR: Existing rate — 7.70 per cent; New rate 7.90 per cent
One Year MCLR: Existing rate — 7.85 per cent; New rate 8.05 per cent
The Bank of Baroda MCLR was last revised on June 12 this year, says its website. Bank of Baroda further mentioned from its website that from July 1, its base rate is 8.15 per cent per annum, while the BPLR (Benchmark Prime Lending Rate) for all the existing accounts is 12.45 per cent per annum.
As a result of the Bank of Baroda MCLR rate hike, housing, vehicles and personal loans are going to get more expensive as the EMIs will increase. However, existing home loan borrowers must note that the EMI will be revised only when the reset date of their loans arrive. On Monday, shares of Bank of Baroda closed 3.74 per cent up at Rs 109.55 per equity share on BSE.
