Axis Bank hikes MCLR rate by 25 bps, making loans costlier; Check rates here

New Delhi: One of the biggest Private lenders Axis Bank has increased its marginal cost of funds-based lending rate (MCLR) by 25 basis points, making loans costlier. The new rates are effective from October 18, 2022. It is to be noted that Reserve Bank of India (RBI) had increased the repo rate to 5.90 %, which was third time since May, last month in order to rein down runaway inflation and hamper the sliding of rupee.

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MCLR is a benchmark rate that helps to decide various loan rates such as car loan, home loan, etc.

Now the overnight and one-month MCLR stands at 8.15%, according to the Axis’s bank website. Likewise three months at 8.25%, six months at 8.30%, one year at 8.35%, two years at 8.45%, and three years at 8.50%. It will make the loans costlier and disturb the budget of borrowers. Those who have taken loans may need either to pay higher EMIs or to increase the duration of EMIs.

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SBI increases saving bank interest rate

Inaia's largest public sector lender State Bank of India has said that it has increased the saving bank interest rates by 0.30  percent for deposits of Rs 10 Crore and above while Interest rates for saving Bank deposits below Rs. 10 Crore remains unchanged at 2.70 percent. The rates are applicable from October 15, 2022 onwards, said the Bank.