Kotak Mahindra Bank hikes loan interest rates: Check new rates

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Kotak Mahindra Bank has revised its Marginal Cost of Funds Based Lending Rate (K-MCLR) across all tenures by 5 basis points (bps). As a result, the borrowers’ equated monthly installments (EMI) will go up.

Kotak Mahindra Bank MCLR
The overnight MCLR has been hiked to 8.25 percent, according to the website. It has been raised to 8.50 percent for one month. The bank has raised the MCLR to 8.65 percent for the past three months. The new MCLR is 8.85 percent for six months. It has been raised to 9.10 percent for one year, and to 9.05 percent and 9.25 percent for two and three years, respectively.

Also read: 9 hard lessons for home loan borrowers from the sharp interest rate hikes

OvernightK-MCLR O/N8.25%
One MonthK-MCLR 1M8.50%
Three MonthK-MCLR 3M8.65%
Six MonthK-MCLR 6M8.85%
One YearK-MCLR 1Y9.05%
Two yearK-MCLR 2Y9.10%
Three yearK-MCLR 3Y9.25%

Kotak Mahindra Base rate with effect from Jan 16, 2023 is at 7.65%. The ‘Benchmark PLR’ of Kotak Mahindra Bank Ltd with effect from Jan 16, 2023 is at 16.40%.

Other banks that have hiked MCLR
Lenders that hiked their marginal cost of fund-based lending rate in March, include State Bank of India (SBI), Union Bank of India, and Bank of Baroda (MCLR).

What is MCLR?
Marginal Cost of Funds-based Lending Rate is referred to as MCLR. The lowest interest rate at which banks or other financial institutions would not loan you money. The bank determines the MCLR based on four factors: the marginal cost of funds, the negative carry on account of the cash reserve ratio (CRR), the tenure premium, and the bank’s operating expenses.

How is your home loan affected by the MCLR?
Your EMI or tenure will change in response to a change in the MCLR rate. Nevertheless, because MCLR-based home loans have a reset period, you could not immediately profit unless your reset period is about to begin. Home loans based on the MCLR contribute to increased interest rate transparency. Also, it makes it easier for borrowers to receive the benefits of rate reductions.

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