bank of baroda: Bank of Baroda increases MCLR on loans: Check details

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Bank of Baroda (BoB), on Monday, said that it has increased the marginal cost of funds-based lending interest rates on loans by 0.05 percent with effect from April 12, 2022. BoB made this announcement via a regulatory filing with the stock exchanges.

Home, auto, and other loans are anticipated to become more expensive as a result of this increase.

The overnight, one-month, three-month, and six-month marginal cost of funds-based MCLR rates of Bank of Baroda have all been raised by 0.05 percent to 6.50 percent, 6.95 percent, 7.10 percent, and 7.20 percent, respectively. Similarly, MCLR for tenor of one year stands at 7.35 percent, as per the Bank of Baroda’s press release.

According to the BSE filing, “We advise that the Bank has approved the review of Marginal Cost of Funds Based Lending Rate (MCLR) w.e. f. 12th April 2022.”

BOB-Bse

Source: BSE website

For existing borrowers, the hike in MCLR will be felt in their EMIs (equated monthly instalment) when the reset date of their home loan arrives.

Usually, the reset date of a home loan between the bank and the borrower is of six months or one year as agreed in the loan agreement. The future EMIs (till the next reset date) will be calculated based on the MCLR rate plus margin, if any, effective on the reset date.

The move came after the Reserve Bank of India’s (RBI) decision to keep key policy rates unchanged at its monetary policy meeting on April 8, 2022.



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