Indian Overseas Bank said that Interest Rate of Loans for Overnight Tenor MCLR and One Month MCLR Shall be Sanctioned Only by the Top Management at Central Office. It also further clarified that Discretion to Sanction Overnight and One Month MCLR is not Available with Any Other Functionaries.
New Delhi: Indian Overseas Bank (IOB) has hiked marginal cost of funding-based lending rate (MCLR) across all tenors. The new MCLR rates will be applicable from today, 10 January 2023.
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ndian Overseas Bank Marginal Cost Of Funds-Based Lending Rates (MCLR) effective from today are as follows:
| Sr. No. | Tenor | Existing MCLR % w.e.f 10.12.2022 | Change | Revised MCLR % w.e.f 10.01.2023 |
|---|---|---|---|---|
| 1 | Overnight MCLR | 7.65 | 0.05 | 7.70 |
| 2 | One – Month MCLR | 7.70 | 0.05 | 7.75 |
| 3 | Three – Month MCLR | 8.00 | 0.05 | 8.05 |
| 4 | Six – Month MCLR | 8.15 | 0.05 | 8.20 |
| 5 | One Year MCLR | 8.25 | 0.05 | 8.30 |
| 6 | Two Year MCLR | 8.35 | 0.05 | 8.40 |
| 7 | Three Year MCLR | 8.40 | 0.05 | 8.45 |
IOB said that Interest Rate of Loans for Overnight Tenor MCLR and One Month MCLR Shall be Sanctioned Only by the Top Management at Central Office. It also further clarified that Discretion to Sanction Overnight and One Month MCLR is not Available with Any Other Functionaries.
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Several banks and lenders have revised their lending rates after the Reserve Bank of India hiked its benchmark lending rates on December 7. The RBI Monetary Policy Committee led by Governor Shaktikanta Das hiked Repo Rate by 35 basis points to 6.25 percent on December 7. Repo is the rate at which Reserve Bank of India lends funds to commercial banks when needed. It is a tool that the central bank uses to control inflation. This is the third hike since the beginning of the current financial year, taking the rate is back to pre-pandemic levels in order to tame the inflationary pressure.
