Bank of Baroda increases MCLR from 8.3% to 8.5% effective January 12

Marginal cost of funds-based lending rate (MCLR) is the minimum interest rate below which a bank cannot lend, except in certain cases

Public sector lender Bank of Baroda (BoB) on Tuesday announced an increase in its marginal cost of funds-based lending rate (MCLR) by up to 35 basis points (bps) across tenors with effect from January 12. MCLR is the minimum interest rate below which a bank cannot lend, except in certain cases. 

According to the announcement, the benchmark MCLR for one year has been updated by 20 basis points from 8.3 per cent to 8.5 per cent. The overnight MCLR has been hiked by 35 bps from 7.5 per cent to 7.85 per cent. The MCLR for a tenor of one