Mumbai: Public sector Syndicate Bank has revised its Marginal Cost based lending rates (MCLR) by 10 basis points from the period effective from 10th July. However, the bank has kept its Base rate and Benchmark Prime Lending Rate (BPLR) unchanged for the same period.
After the revision, the Overnight MCLR has increased to 8.10% from the existing 8.00%. One month MCLR has been hiked to 8.15% from the existing 8.05%. Three Month MCLR has increased to 8.20% from8.10%. Six-month MCLR has been hiked from 8.30% to 8.40%, One-year MCLR has been hiked from 8.55% to 8.65%.
Meanwhile, another Public sector Bank Indian Overseas Bank (IOB) has kept its MCLR unchanged till further review. Currently, its Overnight MCLR is at 8% and One year at 8.60%.
The marginal cost of funds based lending rate (MCLR) refers to the minimum interest rate of a bank below which it cannot lend, except in some cases allowed by the RBI. MCLR actually describes the method by which the minimum interest rate for loans is determined by a bank – on the basis of marginal cost or the additional or incremental cost of arranging one more rupee to the prospective borrower.