Bangalore: Public sector Bank Indian Overseas Bank has revised Marginal Cost Based Lending Rates (MCLR) by 5 bps (0.05%) for different tenures.
While the Overnight MCLR has been revised to 8.15% from 8.10%, one-month MCLR has been hiked to 8.30% from 8.25%, 3-month MCLR to 8. 50% and 6-month MCLR to 8.60%. One year MCLR has been hiked to 8.80% from the existing 8.75%. Meanwhile, two year and Three MCLRs have been hiked to 8.90% and 9.00% respectively. The revised rates will be made effective from today i.e. 10th January.
On the other hand another PSU bank Vijaya Bank has raised One Month MCLR to 8.35% from 8.30 earlier. The bank has kept MCLRs of all other tenures unchanged. The revised rates will be made effective from today i.e. 10th January.
The marginal cost of funds based lending rate (MCLR) refers to the minimum interest rate of a bank below which it cannot lend, except in some cases allowed by the RBI. MCLR actually describes the method by which the minimum interest rate for loans is determined by a bank – on the basis of marginal cost or the additional or incremental cost of arranging one more rupee to the prospective borrower.