Borrowing costs to rise across these tenures after Bank of Baroda's rate hike

The Bank of Baroda has raised interest rates across three tenures effective from November 12, 2024.

This revision of its Marginal Cost of Funds Based Lending Rate (MCLR) will affects its three month-six-month and 1-year tenures.

The MCLR for the three-month tenure has been increased slightly from 8.50% to 8.55%. Similarly, the six-month and one-year tenures will see an increase, with the MCLR for these periods rising from 8.75% to 8.80% and from 8.95% to 9.00%, respectively.

For the overnight and one-month tenures, the MCLR will remain unchanged at 8.15% and 8.35%, respectively.

What is MCLR?

The Marginal Cost of Funds-Based Lending Rate (MCLR) serves as the benchmark interest rate that a lender must charge for its loans, playing a vital role in determining the pricing of loans for borrowers. These rates are fixed unless altered by the Reserve Bank of India (RBI), making them essential for financial planning among consumers.

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