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EMIs to go up as bank hikes lending rates

Mumbai: Leading nationalized bank in the country, Bank of Baroda (BoB) increased the marginal cost of funds-based lending rates (MCLR) by up to 35 basis points (bps) across tenors. The new rates will be in force from today,12 January.  The lender earlier in December last year hiked the lending rates  by upto 30 bps.

The overnight MCLR rate has been hiked  by 35 basis points to 7.85%, while that of one month tenure has been hiked by 20 basis points to 8.15%. The three-month MCLR has been raised to 8.25% and  the six-month MCLR is hiked  to 8.35%.

Also Read: Government hikes auto and taxi fares: Checkout the new rates 

After this rate hike, the equated monthly instalments (EMIs) of all retail loans including car, personal and home will go up. 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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