After SBI, Kotak Mahindra Bank Hikes MCLR; Home and auto loans are expected to increase

New Delhi: Following the State Bank of India (SBI), Kotak Mahindra Bank raised the marginal cost of lending rate (MCLR) by five basis points across all tenors. The new MCLR rates took effect on April 16, 2022. This could result in increased home, auto and other loan EMIs for current and future borrowers.Read also – SBI recruitment 2022: Apply for 641 positions before June 7 | Check salary, application link here

Lending rate based on marginal cost of funds

Tenor Reference Assess
Overnight K-MCLR Y/N 6.65%
A month K-MCLR 1M 6.90%
Three months K-MCLR 3M 6.95%
Six months K-MCLR 6M 7.25%
One year K-MCLR 1Y 7.40%
Two years K-MCLR 2Y 7.70%
Three years K-MCLR 3 years 7.90%

Earlier on Monday, the SBI raised the marginal cost of lending rate (MCLR) on loans at all maturities by 10 basis points. One basis point equals one hundredth of a percentage point Also Read – Fake Currency News: Rs 500 Counterfeit Bills Double Rise; Counterfeit Rs 2,000 notes up to 50%, says RBI

For the uninitiated, banks will need to set interest rates for different types of customers based on the MCLR. Taking into account the repo rate and other lending rates, banks revise the MCLR on a monthly basis. Also Read – Money You Hold Could Be Fake, Says RBI Report | Read for more details

Five reference rates are required for different durations ranging from 1 day to 1 year. Banks are free to set rates for terms longer than 1 year. Banks cannot lend below MCLR, but there are some exceptions. For deposit loans and loans to employees of the relevant bank, banks can lend below the MCLR.

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