Indian Bank on Thursday increased the marginal cost of funds based on lending rate (MCLR), treasury bill linked lending rates (TBLR), base rate and benchmark prime lending rate (BPLR). These new interest rates will be applicable from July 3, 2022.
MCLR:
MCLR Rates have been hiked by 15 basis points across different tenures.
The 1-year MCLR will be 7.55% as against the current 7.40%. The rates on six months and three months tenure will be 7.40% and 7.15% respectively as compared to their current 7.25% and 7%.
The one month MCLR will be 6.95% as against the current 6.80%. Overnight MCLR will be 6.75% from the current 6.60%.
TBLR:
Treasury bills Linked lending rates (TBLRs) have been increased by 40-55 basis points over different periods.
TBLR has been increased by 40 bps to 5% from the existing 4.60% on tenure of less than 3 months. Whereas the rate has been increased by 45 bps to 5.55% from the existing 5.10% for those above 3 months or less than or equal to 6 months tenure. Meanwhile, the rate has been increased by 55 basis points to 6.10% from the current 5.55% on tenure of less than 6 months or less than 3 years.
Other benchmarks:
The base rate has increased by 40 bps to 8.70% from the current rate of 8.30%.
Meanwhile, the BPLR has also been increased by 40 bps to 12.95% from the existing 12.55%.
Other benchmark lending rates such as the policy repo rate and the repo benchmark lending rate (RBLR) remain unchanged.
Indian Bank in its regulatory filing today said, “We would like to inform you that the Bank’s Asset Liability Management Committee (ALCO) has reviewed the Marginal Cost of Funds Based Lending Rate (MCLR), Treasury Bill Linked Lending Rates (TBLR) ., decided to revise the Base Rate and Benchmark Prime Lending Rate (BPLR) and upwards.”
Once the new rates of these lending benchmarks come into effect, their interest rates on term loans linked to the above benchmarks will also go up. There, the EMI will get costlier going forward.
Term loans include personal loans, home loans, auto loans and education loans.
Indian Bank closed on BSE Roughly 149.60 flat compared to the previous close.