These two private sector banks have increased their MCLR, the burden on customers will increase on EMI

MCLR Hike Loan Costly: The Reserve Bank has increased its repo rate a total of 5 times since May in the year 2022 to control inflation in the country. This year the repo rate of the Reserve Bank has increased by 2.25 percent. The last time the Reserve Bank increased its repo rate by 0.35 percent on December 7, 2022. Since this increase, many banks have increased their loan interest rates and FD rates. Now the names of two more banks have also been included in this list. These banks are IndusInd Bank and RBL Bank. Both these banks have increased their Marginal Cost of Fund based lending rate. Know how much the new MCLR of both the banks have increased and since when the new rates have been implemented.

New MCLR of IndusInd Bank-

IndusInd Bank has increased its MCLR by 5 to 15 basis points. Only after this increase, the burden of EMI on the customers will increase. The new rates of the bank have come into effect from December 22, 2022. 8.80 percent interest is being offered on the overnight loan of the bank. At the same time, the MCLR of 1 month loan has increased to 8.85 percent. At the same time, 3-month MCLR has reached 9.20 percent, 6-month MCLR 9.60 percent, 1-year MCLR 9.95 percent, 2-year and 3-year MCLR 10.15 percent.

New MCLR of RBL Bank-

RBL Bank has increased its LCLR by 10 basis points. Loan interest rates have increased since this increase. This hike is applicable for both new and old customers. According to the information given on the official website of the bank, the overnight MCLR of RBL Bank has reached 8.70 percent. Whereas, 1 month MCLR has come down to 8.80 per cent, 3 months MCLR 9.10 per cent, 6 months MCLR 9.50 per cent and 1 year MCLR 9.90 per cent.

What is Marginal Cost of Funds Based Lending Rate?

Let us tell you that at present all floating rate loans are linked to MCLR or external benchmark lending rate. MCLR was implemented in April 2016. According to the new guidelines of RBI, commercial banks now give loans on the basis of Marginal Cost of Funds Based Lending Rate i.e. MCLR instead of Base Rate. Marginal cost of funds is very important for determining MCLR. Marginal cost of funds changes with any change in the repo rate. When the loan taken by the customers on the floating rate is reset, then the interest rates of the loans of the customers will be decided on the basis of the new MCLR, after which their EMI will become expensive.

read this also-

Petrol-Diesel Price: Tremendous increase in crude oil, have petrol-diesel prices increased in your city? Check new rates here