Bank New Rule: Bank of Baroda Interest Rate: The effect of increasing the repo rate by the Reserve Bank of India (RBI) in the last days has started showing once again. Bank of Baroda (BoB), the largest public sector bank, has announced a 0.20 per cent hike in the marginal cost of funds (MCLR) based lending rate for various tenor loans. The new rates will be applicable from August 12. The stock market was also informed about this on 10 August (Wednesday) by the bank.
The new rates will be effective from August 12. In the information sent to the stock market, it was said on behalf of the bank that it has approved the increase in MCLR rate. This will be effective from August 12. The benchmark MCLR for one-year tenor has been increased from 7.65 per cent to 7.70 per cent. The interest rates of most consumer loans are fixed on this basis. Apart from this, the MCLR has been increased by 0.20 percent to 7.40 percent for the loan of one month.
These banks also increased the interest rates , in addition to this, it has been decided to increase the MCLR by 0.10 percent for loans of 3 months and six months to 7.45 and 7.55 percent respectively. The Reserve Bank of India (RBI) last week increased the key policy rate repo by 0.50 percent. After this many banks have increased their interest rates. Earlier, ICICI Bank, Canara Bank and PNB (Punjab National Bank) have also decided to increase the interest rate.
The decision taken by Bank of Baroda to increase the repo rate three times will affect about 20 million customers associated with the bank. Let us tell you that in the last two months, the repo rate has been increased thrice by the RBI. First the central bank has increased it by 40 basis points, then by 50 basis points and once again by 50 basis points. Due to this the interest rates of the loan are getting expensive.
