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Bank of India has hiked the MCLR-based lending rates by 0.10 per cent for various tenors.
“Bank of India has revised upward the marginal cost-based lending rate for one-year at 8.50 per cent, while overnight rate was up by 10 bps at 7.90 per cent,” BoI said in a statement.
Among others, the one-month and three-month marginal cost of lending rate (MCLR) have been enhanced by 0.10 per cent or 10 bps each to 8.20 per cent and 8.30 per cent, respectively. Six-month tenor will bear an interest rate of 8.45 per cent, up 0.10 per cent, from the current rate of 8.35 per cent.
Bank of India said the enhanced rates would come into effect from June 10, 2018. Big lenders such as SBI, ICICI Bank and HDFC Bank have already increased their MCLR making consumer loans such as auto, home and business loans costly.
Among those who have joined the bigger banks include private sector Karur Vysya Bank and Indian Bank. Banks review the MCLR every month, which is a uniform methodology introduced from April 2016 to ensure fair interest rates to borrowers as well as banks.
Bank of India stock was trading higher by 2.59 per cent at Rs 101.05 on the BSE.
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