Bank of Baroda’s loan became expensive, know how much interest rates increased

Earlier, ICICI Bank and Punjab National Bank have also increased the lending rate. Banks are making their loans expensive after the increase in repo rates by half a percent by the Reserve Bank.

Bank of Baroda’s loan became expensive

After the increase in the repo rates by the Reserve Bank, banks are continuously increasing their lending rates. In this episode, the name of Bank of Baroda has also been added. Bank Of Baroda (BoB) has announced an increase in the marginal cost of funds (MCLR) based lending rate by 0.20 percent for various tenor loans. The new rates will be applicable from August 12. The bank said in the information sent to the stock market on Wednesday that it has approved the increase in MCLR rate. This will be effective from August 12.

Know how much interest rates increased

According to the information given by the bank, the benchmark MCLR for a period of one year has been increased from 7.65 percent to 7.70 percent. The interest rates of most consumer loans are decided on this basis. The MCLR has been increased by 0.20 percent to 7.40 percent for loans of one month duration. At the same time, it has been decided to increase the MCLR by 0.10 per cent to 7.45 and 7.55 per cent for loans of three months and six months, respectively. The Reserve Bank of India (RBI) last week increased the key policy rate repo by 0.50 percent. After this many banks have increased their interest rates.

And which banks increased rates

Two days ago, ICICI Bank and Punjab National Bank have also increased the lending rate. ICICI Bank said in a notification that the ICICI Bank External Standard Lending Rate (I-EBLR) is referred to the RBI’s policy rate. The bank said, I-EBLR is 9.10 per cent per annum and payable per month. The hike in rates has become effective from August 5. Public sector Punjab National Bank also while giving information about the rate hike said, after increasing the repo rate by the RBI, the repo related lending rate (RLLR) has also been increased from 7.40 percent. 7.90 per cent which will be effective from August 8, 2022.