Kotak Mahindra Bank MCLR
The overnight MCLR has been revised to 8.20 percent, according to the website. It has been raised to 8.45 percent for one month. The bank has raised the MCLR to 8.60 percent for the past three months. The new MCLR is 8.80 percent for six months. It has been raised to 9.00 percent for one year, and to 9.05 percent and 9.20 percent for two and three years, respectively.
| Tenor | Benchmark | Rate |
| Overnight | K-MCLR O/N | 8.20% |
| One Month | K-MCLR 1M | 8.45% |
| Three Month | K-MCLR 3M | 8.60% |
| Six Month | K-MCLR 6M | 8.80% |
| One Year | K-MCLR 1Y | 9.00% |
| Two year | K-MCLR 2Y | 9.05% |
| Three year | K-MCLR 3Y | 9.20% |
Source: Bank website
What is MCLR
According to the Kotak Mahindra Bank website, “The Marginal Cost Lending rate is the minimum rate below which banks cannot lend. It is an internal rate fixed by individual banks for floating loans. The MCLR is linked to the marginal cost of funds, operating costs, cost of carrying in cash reserve ratio and tenure premium. It is determined based on the current cost of funds as opposed to the base rate which is based on the average cost of funds. MCLR is also more responsive to changes in policy rates. However, there was still a lack of transparency in the home loan interest rates for customers.”
Kotak Mahindra base rate
According to the Kotak Mahindra Bank website, “Base Rate of Kotak Mahindra Bank Ltd with effect from Jan 16, 2023 : 7.65%. The ‘Benchmark PLR’ of Kotak Mahindra Bank Ltd with effect from Jan 16, 2023: 16.40%.”
Other banks that have hiked MCLR
After the Reserve Bank increased the repo rate last week, lenders, including State Bank of India (SBI) and Union Bank of India, Bank of Baroda increased their marginal cost of fund-based lending rate (MCLR). This will cause borrowers’ equated monthly installments (EMI) to increase.