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Bank of Maharashtra and Karur Vysya Bank have raised the marginal cost of the funding-based lending rate (MCLR) following RBI repo rate hike.
Bank of Maharashtra raised the marginal cost of funding-based lending rate (MCLR) across tenors by 0.15%, while Karur Vysya Bank revised the external benchmark rate to 7.45% from 7.15%.
Following the increase, Bank of Maharashtra said in a regulatory filing, this is to inform that the bank has reviewed the marginal cost of funds based lending rate, which has come to effect from May 7, 2022.
Private sector lender Karur Vysya Bank in a separate filing said that it has revised the external benchmark rate -- Repo Linked (EBR-R) -- of the bank with effect from May 9, 2022, to 7.45% from 7.15%.
The benchmark one-year MCLR -- against which most of the personal, auto and home loans are linked -- has been raised to 7.40%. The other tenor ranging from overnight to one-three and six months have also seen a hike in MCLR by the same margin from 6.85-7.30%.
Following RBI's out of turn hike in repo rate by 0.40%, several banks have hiked the repo linked lending rates too. The hike in the external benchmark or repo linked lending rate makes most of the consumer loans pricey, such as auto, home and personal.
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