Bangalore: Public sector Indian Overseas Bank has revised Marginal Cost Based Lending Rates (MCLR) for different tenures. Except overnight MCLR, which has been kept unchanged at 8.05%, all the other tenures have been hiked by 0.05% or 5 bps.
While one-month MCLR has been hiked to 8.20%, 3-month MCLR to 8.40% and 6-month MCLR to 8.50%, one year to 8.70%, Two year to 8.80% and Three Year has been hiked to 8.90%. The revised rates will be made effective from 10th September.
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.