Government bank gave a bang in the new year, increased the interest rate from today; Find out the new rates

Mumbai: As the new year begins, this important bank has given a big shock to its crores of customers by increasing the interest rates. Bank of Baroda (BoB) has increased the Marginal Cost Based Lending Rate (MCLR) by 0.35 percent. This will make borrowing linked to the benchmark lending rate expensive. BoB said in a statement to the stock market that the new rates will be effective from January 12.

Repo rate hiked by 2.25 percent

The one-day MCLR has been raised from 7.50 to 7.85 percent. Whereas MCLR for one month, three months, six months and one year has been increased by 0.20 percent to 8.15 percent, 8.25 percent, 8.35 percent and 8.50 percent respectively. The Reserve Bank of India (RBI) hiked the key policy rate repo rate by 2.25 percent since May last year. The repo rate was last hiked by 0.35 percent on December 7, 2022.

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Increase in MCLR
One day – 7.85 percent
One month – 8.15 percent
Three months – 8.25 percent
Six months – 8.35 percent
One year – 8.50 percent

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Who will get hit?

Corporate borrowers will be hit hardest by MCLR hike. Most rates for retail loans, including mortgages, consumer loans and small business loans, are based on the MCLR.

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On the other hand, Indian Overseas Bank (IOB) has revised the interest rate on EFI deposits to 0.45 per cent. This change is effective immediately. With this, households, NROs and NREs (Non-Resident Outsiders) will now get 7.75 per cent interest on 444-day deposits, IOB said in a statement. Interest on foreign currency deposits has also been increased by one percent.