Buying a house? Keep an eye on your bank's marginal cost of lending rate

Check if you are on the best possible loan rate and also make part prepayment to counter the rise in interest rate

Several banks like Axis, IndusInd, Yes and Kotak Mahindra have hiked their marginal cost of lending rate (MCLR) by 5-10 basis points. It is expected that public sector banks may also follow suit. While it is hard to predict whether this is just a temporary spike or rates will continue to move upward, home loan borrowers need to take note of this development and respond to it.     

Interest rates within the economy have moved up, as is evident from the rise in the 10-year G-Sec yield. From around 6.41 per cent on July 24, 2017, the 10-year G-Sec