Loan interest

Loan Interest Rates: Banks Increase MCLR on Loans: SBI vs BOB vs Axis Bank vs Kotak Mahindra Bank Loan Interest Rate Comparison

Many banks such as SBI, Axis Bank, Bank of Baroda and Kotak Mahindra Bank have started raising the marginal cost of funds based lending rate (MCLR) on loans.

When the MCLR increases, borrowers’ interest payments generally increase. Existing borrowers’ EMIs will be affected when their loan reset dates arrive due to the increased MCLR.

Now, let’s compare and see which bank offers the lowest after the hike.

SBI

The State Bank of India (SBI) recently announced a ten basis point increase in the marginal cost of lending rate (MCLR) on loans. Duration-based MCLR interest rates come into effect on April 15, 2022.

According to the SBI website, the overnight, one-month, three-month and six-month MCLR rates were all increased by 10 basis points to 6.75%, 6.75%, 6.75% and 7.05%, respectively. Similarly, the MCLR for a duration of one year amounts to 7.10%, two years to 7.30% and three years to 7.40%.

Bank of Baroda

The BoB increased the marginal cost of interest rates on fund-based loans by 0.05% effective April 12, 2022. Overnight, one-month, three-month, and six-month marginal cost MCLR rates based on Bank of Baroda funds were all raised by 0.05% to 6.50%, 6.95%, 7.10% and 7.20%, respectively. Similarly, the MCLR for a one-year term stands at 7.35%, according to the Bank of Baroda press release.

Axis Bank

Axis Bank has raised the marginal cost of funds-based lending rate (MCLR) on loans, just days after State Bank of India (SBI) raised it. According to the Axis Bank website, MCLR rates were raised by 5 basis points across all durations. The revised prices will take effect on April 18, 2022.

The overnight, one-month, three-month and six-month marginal cost rates of Axis Bank funds-based MCLR rates were all raised by 0.05% to 7.15%, 7.15 %, 7.25% and 7.30%, respectively. Similarly, the MCLR for the one year term is 7.35%, two years 7.45% and three years 7.50%.

Kotak Mahindra Bank

Kotak Mahindra Bank’s Marginal Cost of Lending Rate (MCLR) has been updated for all loan terms. According to the Kotak Mahindra Bank website, the new revised rates will come into effect on April 16, 2022.

The most recent overnight MCLR is 6.65%, with rates of 6.90%, 6.95%, and 7.25% for one month, three months, and six months, respectively. The one-year, two-year and three-year rates are 7.40%, 7.70% and 7.90% respectively.