Thursday, August 11, 2022
BusinessYes bank raises MCLR, Check how much it will affect home and...

Yes bank raises MCLR, Check how much it will affect home and car loans

The increase in MCLR will hurt consumers. Their current loan is expensive and they have to pay more EMI than before.

The country’s leading private bank, Yes Bank, raised the MCLR rate. MCLR is called the Marginal Cost of Lending Rate. It plays an important role in determining the interest on the loan. Yes The MCLR rate increased by the bank has taken effect.

Notably, Yes Bank raised its MCLR rate nearly a month after the RBI raised its repo rate to 4.90 percent. The rate increase will be effective from July 1.

This means that the interest rate will increase for both new and old Yes Bank borrowers. Aside from this, the EMI of marginal cost loans, car loans and other loans also increases.

This increase in MCLR is a direct result of RBI increasing the repo rate. Because any increase in the repo rate increases the banks marginal cost. With this in mind, banks should also raise the MCLR.

Now, the new MCLR for Yes Bank overnight loans has risen to 7.60 per cent. At the same time, it is 7.90 percent for 1 month and 8.25 percent for 3 months. It was changed to 8.70 percent for 6 months and 8.95 percent for 1 year. As of June 1, 2022, Yes Bank’s base rate is 8.75 percent and its BPLR as of July 26, 2011 is 19.75 percent.


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Explain that increasing the MCLR will cause losses to consumers. Their current loan is expensive and they have to pay more EMI than before. When you borrow from a bank, the minimum interest rate the bank charges is called the base rate. Instead of this base rate, banks now use the MCLR.

It is calculated based on the marginal cost of money, the term premium, operating expenses and the cash holding ratio.

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Updated on August 11, 2022 5:01 am

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