EMI will go up; Bank of India will raise interest rates from tomorrow

First Published Aug 31, 2022, 4:06 PM IST

Delhi: Public sector bank Bank of India hikes MCLR (Marginal Cost of Funds Based Lending Rate). Interest rates will rise by 5 to 10 basis points. The revised rate will be effective from September 1.

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The bank hiked the overnight MCLR from 6.80 per cent to 6.85 per cent. The 1-month MCLR rate was kept at 7.30 percent. The 3-month MCLR rate will remain at 7.35 percent. The 6-month MCLR rate has been increased from 7.45 per cent to 7.55 per cent. The 1-year MCLR rate will be increased from 7.60 percent to 7.70 percent and the 3-year MCLR rate will remain at 7.80 percent.

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After the RBI hiked the repo rate by 50 basis points at the MPC meeting in August, leading public sector private banks started raising MCLR. For example, Axis Bank recently increased MCLR by 5 basis points. Axis Bank’s 1-year MCLR is currently 8.05 percent. On August 18, Bank of Maharashtra hiked the MCLR rate by up to 25 bps. Currently, the one-year MCLR is 7.60 percent.

A hike in bank lending rates will leave the common man reeling. Because the EMIs will increase as the rates rise.

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Last Updated Aug 31, 2022, 4:06 PM IST

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