In December 2024, many banks in India increased their Marginal Cost of Lending Rates (MCLRs), while some remained unchanged. The MCLR is the minimum interest rate a bank must charge for a specific loan, setting the lower limit for interest rates. The Reserve Bank of India (RBI) sets the MCLR rates, which are based on the bank’s marginal cost of funds. Some banks that increased their MCLRs include HDFC Bank, Bank of Baroda, Canara Bank, PNB, and IDBI Bank. HDFC Bank increased its overnight MCLR by 5 basis points, while others like SBI kept their rates unchanged. The changes are effective from December 12, 2024, except for PNB, which implemented the changes from December 1, 2024. The banks’ MCLR rates vary by tenure, ranging from overnight to three-year. The changes aim to increase transparency in the calculation of loan interest rates. Home loan borrowers can check their bank’s latest MCLR rates to determine their loan interest rates.
As of December 2024, the latest lending rates from prominent banks SBI, HDFC, PNB, Canara, and IDBI will be reflected below.
by newsworm | Dec 16, 2024 | Bank of Baroda, Banking, Canara Bank, HDFC Bank, IDBI Bank, RBI, State Bank of India