Indian Bank hikes MCLR by 15 bps, EMIs to go up. Check new rates here
Premium- MCLR rates are hiked by 15 basis points on various tenures. The Treasury Bills Linked Lending Rates (TBLR) are hiked by 40-55 basis points on various tenures.
Indian Bank on Thursday increased the Marginal Cost of funds based on the Lending Rate (MCLR), Treasury Bills Linked Lending Rates (TBLR), Base Rate, and Benchmark Prime Lending Rate (BPLR). These new interest rates will come into effect from July 3, 2022.
MCLR:
MCLR rates are hiked by 15 basis points on various tenures.
The 1-year MCLR will be at 7.55% compared to the current 7.40%. The rate will be 7.40% and 7.15% on six months and three months tenure compared to their existing 7.25% and 7% respectively.
The one-month MCLR will be at 6.95% compared to the present 6.80%. Overnight MCLR will be at 6.75% from the current 6.60%.
TBLR:
The Treasury Bills Linked Lending Rates (TBLR) are hiked by 40-55 basis points on various tenures.
TBLR is increased by 40 bps to 5% from the existing 4.60% on less than 3 months tenure. While the rate is hiked by 45 bps to 5.55% from the current 5.10% on above 3 months to less than or equal to 6 months tenure. Meanwhile, the rate has been raised by 55 basis points to 6.10% from the present 5.55% on tenures above 6 months to less than or equal to 3 years.
Other benchmarks:
The base rate has risen by 40 bps to 8.70% from the existing rate of 8.30%.
Meanwhile, BPLR has been hiked by also 40 bps to 12.95% from the current 12.55%.
Other benchmark lending rates such as Policy Repo Rate and Repo Benchmark Lending Rate (RBLR) remain unchanged.
In its regulatory filing today, Indian Bank said, "we have to inform you that the Asset Liability Management Committee (ALCO) of the Bank has reviewed the Marginal Cost of funds based Lending Rate (MCLR), Treasury Bills Linked Lending Rates (TBLR), Base Rate and Benchmark Prime Lending Rate (BPLR) and decided for an upward revision."
Term loans linked to the above-mentioned benchmarks will also see their interest rates go up once the new rates of these lending benchmarks come into effect. There, EMIs will get costlier ahead.
Term loans include personal loans, home loans, auto loans, and education loans among others.
On BSE, Indian Bank closed at ₹149.60 apiece broadly flat compared to the previous closing.