Several major banks in India have recently revised their Marginal Cost of Lending Rates (MCLR).
While some banks have raised their rates, others have opted to keep them unchanged.
MCLR is the minimum interest rate banks charge for loans, influenced by factors like the cost of funds, market conditions,
and the Reserve Bank of India’s (RBI) repo rate. Changes in the repo rate often lead to adjustments in MCLR.
Importance of MCLR Rates
MCLR rates are crucial as they bring transparency to the financial system and help banks set fair interest rates that reflect their costs.
For loan seekers, understanding these rates is essential, as they directly affect the total cost of borrowing.
Updates from SBI, HDFC Bank, and Others
State Bank of India (SBI): SBI has kept its MCLR rates unchanged for December 2024. The overnight MCLR is 8.20%, and the one-year MCLR remains at 9.00%.
HDFC Bank: HDFC Bank has increased its overnight MCLR by 5 basis points, bringing it to 9.20%.
Bank of Baroda: The overnight MCLR is now 8.15%, and the one-year MCLR stands at 9.00%, reflecting a rate increase.
Canara Bank: All tenures have seen a 5 basis point increase. The overnight MCLR is now 8.35%, and the one-year MCLR is 9.10%.
Punjab National Bank (PNB): PNB has raised its MCLR by 5 basis points. The overnight MCLR is now 8.35%, and the one-year MCLR is 9.00%.
IDBI Bank: IDBI Bank has made no changes. The overnight MCLR remains at 8.45%, and the one-year MCLR stays at 9.20%.
These updated rates became effective from 12 December 2024, providing loan seekers with updated benchmarks for their borrowing needs.
