The Bank of Baroda increases the interest rate on loans at all maturities; Check the latest rates here

Baroda’s state-owned bank said on Thursday it had raised its marginal cost of funds-based lending rate (MCLR) by up to 15 basis points (bps) across tenors.

The lender has approved the revision of the lending rate based on the marginal cost of funds (MCLR) with effect from November 12, 2022, the Bank of Baroda said in a regulatory filing.

The benchmark one-year MCLR duration was raised by 10 basis points to 8.05%. This is the rate at which most consumer loans such as personal, auto and home loans are tied.

Among other things, the overnight rate was raised to 7.25% from 7.10% previously.

The one-, three- and six-month MCLRs were raised by 10 basis points each to 7.70%, 7.75% and 7.90%, respectively.

The rate hike by Bank of Baroda comes a day after its counterpart Bank of Maharashtra raised the MCLR rate by 10 basis points.

The benchmark one-year MCLR was revised up to 7.90% from 7.80%, the lender said in a regulatory filing.

The revised MCLR came into effect on November 7, 2022.

The one-month MCLR was raised by 5 basis points to 7.50%.

Rates for other fixed-term loans, such as overnight, three- and six-month loans, remained unchanged.

Banks are raising rates after the Reserve Bank of India raised its benchmark rate to 5.9% in September. On September 30, the RBI raised the repo rate by 50 basis points to 5.9%, the fourth rate hike since May this year, in a bid to contain inflation.

(With PTI inputs)

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