DCB has revised the marginal cost of funds based lending rateMCLR), with effect from July 5, 2022.

according to

The website, overnight and one-month MCLR rates have been revised to 8.55 percent, three-month MCLR to 9.25 percent, six-month MCLR to 9.45 percent and one-year MCLR to 9.50%.

Latest MCLR Interest Rates

Source: Bank’s website

In June, the bank revised the external benchmark linked rate (EBLR) to 9.34 per cent and the external benchmark linked rate-home loan (EBLR-HL) to 9.06 per cent.

The marginal cost of funds based lending rate (MCLR) varies with the tenure and can range from immediate to three years. MCLR is a tenure based benchmark, not a single rate. Banks will have to publish at least five MCLR rates over a tenure of overnight, one month, three months, six months and one year. The final lending rates offered by banks are arrived at by adding ‘spread’ to the MCLR rate.

An increase in MCLR will usually lead to an increase in interest by the borrowers. The increase in MCLR will impact the EMIs of existing borrowers when their loan reset dates come.

Spread the love