bank of india have increased their marginal cost of funds based lending rate ,MCLR) by 15 basis points (bps) for select periods with effect from July 1, 2022.

For borrowers with loans linked to MCLR, this increase will result in higher EMI outgo.

As a result of the amendment, the one-year MCLR has increased from 7.35 to 7.50 per cent. The one-month, three-month and six-month MCLR has been increased by 15 basis points, taking them to 7.05, 7.10 and 7.20 per cent, respectively. The overnight and 3-year MCLRs have been kept unchanged at 2.90 and 7.70 per cent, respectively.

MCLR

Source: Bank’s website

reserve Bank of India has increased the repo rate by 90 basis points (bps) (from May 2022) to 4.90 per cent. Interest rates are expected to rise further in the coming months as a result of geopolitical unrest and inflationary concerns.