Interest Rate Hike: Consumers have to wait longer for cheap loans due to inflation again in the country. For the ninth time in a row, the Reserve Bank has turned the tide in the Monetary Policy Committee (MPC) on hopes of lowering the benchmark interest rate, keeping the repo rate unchanged and reducing EMIs. However, on the other hand, the three state-owned banks of the country have given a double blow to the loan holders. Customers got a big jolt as UCO Bank, Bank of Baroda and Canara Bank announced hike in MCLR interest rates. All the three banks have decided to increase the interest rates for different periods and the loans including home loan, car loan, education loan have become expensive for most of the customers.

A blow to Canara Bank customers:
Public sector giant Canara Bank has announced an increase of 5 basis points in all tenor interest rates in line with the change in MCLR. After this increase, the overnight MCLR has increased from 8.20 percent to 8.25 percent. Apart from this, the MCLR for one-month period has increased to 8.35 percent from 8.30 percent, the three-month MCLR has increased from 8.40 percent to 8.45 percent, the six-month MCLR rate has increased to 8.80 percent from 8.75 percent and the one-year period has increased to 9.00 percent from 8.95 percent. MCLR for two years increased from 9.25 percent to 9.30 percent and MCLR for three years increased from 9.35 percent to 9.40 percent. After the change in these rates, customers’ home loan EMI, car loan EMI etc. will increase. Importantly, the bank’s new rates will come into effect from 12th August 2024 i.e. Monday. Public sector UCO Bank has also announced an increase in interest rates. The bank has also hiked other benchmark rates along with MCLR. The bank’s overnight MCLR stands at 8.20 percent, one-month MCLR at 8.35 percent, three-month MCLR at 8.50 percent, six-month MCLR at 8.80 percent and one-year MCLR at 8.95 percent. Apart from this, TBLR for 3, 6 and 12 months has increased to 6.70 percent, 6.85 percent and 6.90 percent respectively. Apart from this, repo linked UCO flat rate is 9.30 percent and base rate is 9.60 percent. The new rates are effective from August 10, 2024 i.e. Saturday.

BoB’s loans also become expensive:
Apart from UCO and Canara, Bank of Baroda has also changed interest rates. The bank’s overnight MCLR remained unchanged at 8.15 percent and one-month MCLR at 8.35 percent, while three-month MCLR stood at 8.50 percent, six-month MCLR at 8.75 percent and one-year MCLR at 8.95 percent with an increase of 5 basis points. The new bank rates will be effective from 12th August 2024 i.e. Monday.