Kotak Mahindra Bank Cuts One-Year MCLR Rate By 20 Bps, Hikes For Other Tenors
For other tenor loans ranging from overnight to three year, the revised rates are in the range of 7.80-9.05%.
Private sector Kotak Mahindra Bank has revised upward its marginal cost of funds based lending rate for different tenors but reduced the benchmark one-year tenor rate by 20 basis points.
The marginal cost of funds based lending rate linked loan rates for the benchmark one-year tenor, which is used by banks to price most of consumer loans such as auto, home and personal, has been cut to 8.55% from 8.75%.
The revised MCLR rates have come to effect from Nov. 16, 2022, Kotak Bank said on its website.
Banks review their MCLR rates on a monthly basis.
For other tenor loans ranging from overnight to three year, the revised rates are in the range of 7.80-9.05%, according to Kotak.
In the earlier review of MCLR rates in mid-October, Kotak Mahindra Bank had revised these rates in the range of 7.70-8.95%.
The hike in MCLR by the Kotak Mahindra Bank follows a rate revision by the country's largest lender SBI which increased rates by up to 15 basis points across tenors.
SBI hiked the benchmark one-year tenor MCLR to 8.05% with effect from Nov. 15, 2022 as against 7.95% earlier.
Base rate of Kotak Mahindra Bank with effect from Nov. 16, 2022 is at 7.40%, said the lender. Also, the benchmark prime lending rate is 16.15%, it added.
Base rate refers to the minimum rate below which banks are not allowed to lend.