Kotak Mahindra Bank Reduces MCLR Rate For One Tenure; Hikes For The Rest: Check The Latest Rates
As per the official website of the Kotak Mahindra Bank, these new revised rates are set to be applicable from November 16, 2022
As per the official Kotak Mahindra Bank website, the bank has changed the marginal cost of lending rate (MCLR) across various loan tenures. As per the changes made, Kotak Mahindra bank has reduced the MCLR rate for one specific tenure while increasing rates on other loan tenures. These new revised rates are set to be applicable from November 16, 2022, as per the Kotak Mahindra Bank website. Different kinds of loans will become more expensive as a direct result of these changes. The only MCLR which was reduced was the 1-year tenure, which was reduced from 8.75% to 8.50%, a reduction of 20 basis points.
Revised Kotak Mahindra Bank MCLR Rates
As per the Kotak Mahindra Bank's official website, the updated MCLR rates for various tenures are as follows:
Overnight: The updated MCLR rate for overnight tenor is 7.80% per annum.
One Month: The updated MCLR rate for one month tenor is 8.05% per annum.
Three Months: The updated MCLR rate for a three-month tenor is 8.20% per annum.
Six Months: The updated MCLR rate for a six-month tenor is 8.40% per annum.
One Year: The updated MCLR rate for one year tenor is 8.55% per annum.
Two Year The updated MCLR rate for a two-year tenor is 8.85% per annum.
Three Year: The updated MCLR rate for a three-year tenor is 9.05% per annum.
As for the Base Rate, the official website of Kotak Mahindra Bank says; The Base Rate of Kotak Mahindra Bank Ltd with effect from Nov 16, 2022, is 7.40%. The 'Benchmark PLR' of Kotak Mahindra Bank Ltd with effect from Nov 16, 2022, is 16.15%
Also Read: SBI Hikes MCLR By Up To 15 Bps Across Tenors
What Is The Marginal Cost Of Lending Rate (MCLR)?
As per the official Kotak Mahindra Website, ''The Marginal Cost Lending rate is the minimum rate below which banks cannot lend. It is an internal rate fixed by individual banks for floating loans. The MCLR is linked to the marginal cost of funds, operating costs, cost of carrying in cash reserve ratio and tenure premium. It is determined based on the current cost of funds as opposed to the base rate which is based on the average cost of funds. MCLR is also more responsive to changes in policy rates.''