Bank of Maharashtra hikes lending rates for more than six months tenure by 5bps

Bank of Maharashtra announced on October 19 that it has raised its marginal cost of funds-based lending rate (MCLR for more than six months tenure by 5bps from 9 percent to 9.05 percent.

The new rate will come into effect from October 19. The rates for other tenures remain unchanged.

MCLR is the minimum interest rate at which a bank can offer a loan to a customer. It also acts as an internal reference rate for a bank to calculate interest rates for various other types of loans that it offers.

Any increase in MCLR directly impacts the cost of loans for customers, while also boosting the bank’s margins on loans.