Mumbai: Leading public sector banks in the country, Bank of Baroda and Canara Bank increased their marginal cost of funds-based lending rates (MCLR). The lending rates were hiked by up to 10 basis points. The new one-year MCLR for both banks will be 8.70.
The rate hike is likely to increase the monthly repayments for borrowers who have taken out loans with MCLR-linked interest rates.
Also Read: Market capitalization of 7 of top-10 companies falls by Rs 74,603 crore
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.
Post Your Comments