Bank of Baroda raised its Marginal Cost Of Funds Based Lending Rate (MCLR) across four tenors by 5 basis points with effect from Friday i.e., April 12, 2024. The public sector lender hiked its MCLR even though the Reserve Bank of India kept the repo rate unchanged at 6.50% in its latest policy meeting.
With the latest revision, Bank of Baroda’s base rate stands at 9.40%. In addition, the Benchmark Prime Lending Rate (BPLR) for all the existing accounts stands at 13.70% per annum effective from April 12, 2023.
Latest lending rates of the public sector bank:
With the new rates becoming effective, overnight MCLR is 8.10% compared to 8.05% earlier. The three-month MCLR has been raised to 8.45% compared to 8.40% earlier. The six-month MCLR and one-year MCLR now stand at 8.65% and 8.85% respectively. Meanwhile, the one-month MCLR remains unchanged at 8.30%.
Home loan
Bank of Baroda provides home loans to non-staff members in the range of 8.40% to 10.60% for salaried people. The same interest rate range applies to non-salaried borrowers also. Meanwhile, the interest rate is the same for home improvement loans. Interest rates for Baroda home loan (advantage) for amounts exceeding Rs 75 lakh range between 8.65% to 10.85% for both salaried as well as non-salaried individuals. The loan limit and the applicants’ CIBIL score determine the interest rate on the loan.
FD rates
The fixed deposit interest rate of Bank of Baroda falls in the range of 4.25% to 7.25% per annum. The lender’s highest FD rate at 7.25% is offered when the deposit tenure is between 2 to 3 years.
However, the 399-day Baroda Tiranga Plus Deposit Scheme offers an interest rate of 7.15% per year. The latest rates became effective from Jan 15, 2024.
What is MCLR?
Marginal Cost of Funds Based Lending Rate refers to the minimum lending rate at which a bank lends money to borrowers. The MCLR is determined by taking certain factors into account such as its cost of funds, profit margin, and operating costs.
This rate replaced the earlier base rate system in April 2016 to decide the lending rates for commercial banks.
