Vijaya Bank hikes MCLR rates by 5 bps for various tenures

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Bangalore: Private sector Bank Vijaya Bank has revised Marginal Cost Based Lending Rates (MCLR) for different tenures. While the Two and Three-year MCLRs are kept unchanged at 9% and 9.25% respectively, all the other tenures have been hiked by 0.05% or 5 bps.

While the Overnight MCLR has been revised to 8.05%, one-month MCLR has been hiked to 8.15%, 3-month MCLR to 8.35% and 6-month MCLR to 8.60%. The revised rates will be made effective from 7th September.

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.

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