Loan EMI: These bank customers got a big setback, then the loan became expensive, know how much MCLR increased

Newz Fast, New Delhi: Banks have increased MCLR by 0.10 percent. These new rates have come into effect from 10 September 2022. Indian Overseas Bank has said that this increase will be applicable for every term loan.

If your account is also in Bank of Baroda, then this news is important for you. Explain that Bank of Baroda has increased the marginal cost of lending rate.

Apart from this, Indian Overseas Bank has also increased the MCLR. Due to this, the burden of home, car, personal and education loans is going to increase on the customers.

How much did the Marginal Cost of Lending Rate (MCLR) increase?
Let us tell you that both the banks have increased the MCLR by 0.10 percent. These new rates have come into effect from 10 September 2022. Indian Overseas Bank has said that this increase will be applicable for every term loan.

Indian Overseas Bank
Indian Overseas Bank has increased the MCLR by 0.10 percent. Now the new MCLR of the bank has become 7.15% for one day. At the same time, the MCLR for 6 months has become 7.70%. Whereas, one year MCLR has been 7.75 percent.

Bank Of Baroda
After the increase in MCLR of Bank of Baroda, the overnight MCLR of the bank has become 7.50%. At the same time, MCLR for 3 months is 7.50 percent, 6 months MCLR is 7.65 percent and MCLR on 1 year loan has become 7.80%.

What will be the impact of increasing MCLR?
Let us tell you how much interest the bank will charge on home loan, personal loan, car loan and any type of loan. All this is decided on the basis of Marginal Cost of Lending Rate (MCLR Rate). On this basis, the monthly EMI of the borrowers is decided.

What is MCLR?
Let us tell you that RBI started this scheme in April 2016 for taking loans. Under this, no bank can give a loan to any customer at less than the fixed MCLR, that is, this is the minimum rate to collect interest from all the customers.
However, in addition to this rate, the bank can also charge interest rate from the customers. But in no case less than this is charged.