Bank Of Baroda Hikes Rates: Even in the new year, the process of costlier loans is not taking the name of stopping. Public sector giant Bank of Baroda has made loans costlier. The bank decided to increase the interest rates of its MCLR ie Margin Cost of Fund based loan by 35 basis points. The increase in interest rates will be applicable from June 12, 2023.
Bank of Baroda has increased the one year MCLR from 8.30 per cent to 8.50 per cent. Overnight MCLR has been increased from 7.5 per cent to 7.85 per cent. The one-month MCLR has been increased from 7.95 percent to 8.15 percent, and the 3-month MCLR has been increased from 8.06 percent to 8.15 percent and the 6-month MCLR has been increased from 8.25 percent to 8.35 percent. That is, banks will no longer give loans below these rates.
Bank of Baroda’s decision to increase interest rates will affect everyone from retail to corporate and SME. After this increase, MCLR based loans will become costlier. The EMI of those whose home loan is going on will become expensive. SBI and Axis Bank have also increased MCLR in the month of December. In December, SBI has made interest rates expensive by 15 basis points and Axis Bank by 30 basis points.
In December 2022, RBI had decided to increase the repo rate for the fifth time. RBI had increased the repo rate by 35 basis points in December, after which banks are continuously making loans costlier. In 2022, RBI has increased the repo rate five times. In these five steps, the repo rate was increased from 4 per cent to 6.25 per cent.