Personal Finance

Bank of India hikes MCLR on loans

Bank of India has increased its marginal cost of funds-based lending rate (MCLR) by 15 basis points (bps) for select tenors, with effect from July 1, 2022.

For borrowers with MCLR-linked loans, this increase will result in higher EMI outgo.

The one-year MCLR has gone up from 7.35 to 7.50 percent as a result of the modification. A 15 basis point increase has been made to the one-month, three-month and 6 month MCLRs, bringing them to 7.05, 7.10, and 7.20 percent, respectively. The overnight and 3 year MCLR has been kept unchanged at 2.90 and 7.70 percent, respectively.



Source: Bank website

The Reserve Bank of India has raised the repo rate by 90 basis points (bps) (since May 2022), bringing it to 4.90 percent. Interest rates are expected to rise more in the upcoming months as a result of geopolitical unrest and inflationary worries.


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