Kotak Mahindra Bank Hikes MCLR for Different Loans From January 16- Check Here

Kotak Mahindra Bank raised its marginal cost of funds-based lending rate (MCLR) across tenures by 10 to 30 basis points (bps) for various loan segments on Monday. The updated MCLR rates will be effective on January 16, 2023. The minimum interest rate that a bank can charge for a loan is known as the MCLR (Marginal Cost of Funds Based Lending Rate). Under the MCLR regime, banks may issue any type of loan at a fixed or floating interest rate. As a result, for all loans linked to that benchmark, the bank will not lend at a rate lower than the MCLR of that maturity.

According to Kotak Mahindra Bank's official website, the MCLR for various tenures ranges from 8.15 percent to 9.15 percent. Kotak Mahindra Bank raised its 1-year MCLR by 10 basis points earlier in November.

What is MCLR

The Marginal Cost Lending rate is the lowest interest rate at which banks cannot lend. Individual banks set the floating loan internal rate. The MCLR is determined by the marginal cost of funds, operating costs, cash reserve ratio, and tenure premium. It is calculated using the current cost of funds, as opposed to the base rate, which is calculated using the average cost of funds. In addition, the MCLR is more sensitive to changes in policy rates. Customers, however, continued to face a lack of transparency in home loan interest rates.

Tenor	Benchmark	Rate
Overnight	K-MCLR O/N	8.15%
One Month	K-MCLR 1M	8.40%
Three Month	K-MCLR 3M	8.55%
Six Month	K-MCLR 6M	8.75%
One Year	K-MCLR 1Y	8.95%
Two Year	K-MCLR 2Y	9.00%
Three Year	K-MCLR 3Y	9.15%

According to information available on the Kotak Mahindra Bank website, the overnight MCLR is now 8.15 percent, the one-month MCLR is 8.40 percent, the three-month MCLR is 8.55 percent, the six-month MCLR is 8.75 percent, the one-year MCLR is 8.95 percent, the two-year MCLR is 9%, and the three-year MCLR is 9%. The MCLR has now reached 9.15 percent.