Bank of Baroda has reviewed its benchmark lending rates i.e. marginal cost of funds based lending rates (MCLR) across various tenors.
The public sector lender has reviewed MCLR at 5 BPS above existing level with immediate effect from June 7.
The Bank's 1-year MCLR will be 8.45 percent, which is competitive as per the current market scenario. For all other tenors: overnight, one month, three months and six months rates will be 7.95 percent, 8.00 percent, 8.10 percent and 8.30 percent, respectively.
The increase is attributed to higher cost of fund and rising interest rate scenario. Lately, several banks including SBI, ICICI, PNB, Union Bank etc. have raised their MCLR rates.
Bank of Baroda said it does not add any mark-up on its MCLR for its best rated home loan borrowers.