Key Points of Bank of Maharashtra Loan Rates Increase:
- Bank of Maharashtra has raised its marginal cost of funds-based lending rates (MCLR) by 10 basis points across all tenors.
- The revised MCLR came into effect on April 15, 2023, with the benchmark one-year MCLR increasing to 8.50 percent.
- The bank has stated that the one-year MCLR is the primary rate used to determine interest rates for most consumer loans.
- Customers taking out loans such as personal, auto, and home loans will experience an increase in interest rates following the MCLR rise.
- Bank of Maharashtra’s decision to increase MCLR aims to maintain profitability and ensure long-term growth in the current economic climate, which has impacted various banks and financial institutions.
Details of Bank of Maharashtra Loan Rates Increase:
Bank of Maharashtra Raises Marginal Cost of Funds Based Lending Rates (MCLR) by 10 Basis Points
State-owned Bank of Maharashtra (BoM) has recently announced a 10 basis point increase in its marginal cost of funds-based lending rates (MCLR) across all tenors. The revised MCLR came into effect on April 15, 2023, and the benchmark one-year MCLR has risen to 8.50 percent.
BoM has stated that the one-year MCLR is the primary rate used to determine interest rates for most consumer loans, such as personal, auto, and home loans. Consequently, customers taking out these loans will experience an increase in interest rates following the MCLR rise.
The bank has also increased its overnight and one-month tenor MCLRs by 0.10 percent each, with corresponding rates of 7.90 percent and 8.10 percent, respectively. The six-month maturity bucket has also increased to 8.40 percent.
Bank of Maharashtra’s decision to increase MCLR aligns with the current economic climate, which has impacted various banks and financial institutions. The move is intended to maintain the bank’s profitability and ensure its long-term growth.
This increase in MCLR may have an impact on customers taking out loans from the bank. Hence, customers are advised to take note of the revised rates and assess their effect on their loans.
About Bank of Maharashtra:
Bank of Maharashtra, a public sector bank headquartered in Pune, India, boasts a vast customer base of 29 million across the country as of March 2022. The bank operates 2022 branches, the most extensive network of any nationalized bank in the state of Maharashtra.
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