Winning Bizness Desk

Mumbai. HDFC Bank, Canara Bank, Bank of Maharashtra and Karur Vysya Bank have revised their lending rates based on marginal cost of funds and repo rate. The country's largest private sector lender HDFC Bank has increased the marginal cost of funds based lending rate (MCLR) by 0.25 per cent to 7.70 per cent with effect from May 7, 2022.

HDFC Bank

HDFC Bank said on its website that the one-year MCLR - to which most consumer loans are linked - has been increased to 7.50 per cent. The two-year and three-year MCLR rates for HDFC Bank customers will be 7.60 percent and 7.70 percent, respectively. While the MCLR for one day and one-three-six months will be in the range of 7.15-7.35 percent.

Canara Bank

Bengaluru-based Canara Bank said it has increased the repo linked interest rate (RRLR) to 7.30 per cent with effect from May 7, 2022. The bank also revised the MCLR based lending rates with one-year rate of 7.35 per cent. The MCLR for one day to six months will be in the range of 6.65 to 7.30 per cent. These MCLR rates will be effective till further review.

Bank of Maharashtra

Pune-based state-run lender Bank of Maharashtra said it has increased the MCLR by 0.15 per cent.

Karur Vysya Bank

Private sector lender Karur Vysya Bank said in a separate regulatory notice that it has revised the bank's external benchmark rate - repo linked (EBR-R) to 7.45 per cent from 7.15 per cent with effect from May 9, 2022.

Will make most consumer loans costlier

After the Reserve Bank increased the repo rate by 0.40 percent to 4.40 percent last week, many banks have increased the interest rates related to repo. Increase in external benchmark or repo linked interest rates will make most consumer loans costlier. These include vehicle, house and personal loans. The MCLR system came into effect from April 1, 2016.