Mumbai: Leading private sector banks in the country, Kotak Mahindra Bank and Federal Bank have hiked their marginal cost of funds-based lending rate (MCLR). The lenders increased the lending rate by 10 basis points (bps) across tenures.
After the 10-bps hike, Kotak Mahindra Bank’s overnight, 1-month, 3-months, and 6-months MCLR stood at 8.35%, 8.60%, 8.75% and 9% respectively. MCLR on 1-year tenure was at 9.20% while for 3-year tenure, the MCLR was hiked to 9.35%.
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Federal Bank, meanwhile, increased its overnight, 1-month, 3-months, 6-months and 1-year MCLR by 10 bps to 9.15%, 9.20%, 9.25%, 9.35%, and 9.40%, respectively.
MCLR is the minimum rate of interest banks are allowed to give out loans to its customers. It is a benchmark interest rate and it dictates the lower limit of the interest rate for a loan.
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