These Two Banks Have Made Their Loans Expensive From Today, Read How Much Interest Will Have To Be Paid Now

With the increase in key rates by the Reserve Bank, the process of loans becoming expensive continues continuously. Two more banks have announced to increase their loan rates. On Friday, the Bank of Baroda and Indian Overseas Bank announced an increase in their MCLR rates. According to Indian Overseas Bank, their loan rates will increase from Saturday. On the other hand, the new rates of Bank of Baroda will be applicable from Monday. At present, a further increase in loan rates is expected. Experts believe that in the policy review to be held at the end of September, the Reserve Bank can increase the rates, due to which loans will be more expensive in the coming time.

how expensive the loan
Bank of Baroda (BoB) and Indian Overseas Bank (IOB) have informed that they have increased their MCLR rates for loan disbursement by up to 0.10 percent. IOB said in a regulatory notice that it has increased its MCLR rates by up to 0.10 percent in all the amount segments. With the implementation of the new rate from Saturday, it will become expensive for consumers to take loans. With an increase in the marginal cost-based lending rate (MCLR), all types of loans will become costlier. These include car, personal and residential loans. One-year MCLR is now 7.65 percent while two-year and three-year MCLR is 7.80 percent. Bank of Baroda has also increased the one-year MCLR to 7.80 percent. The six-month MCLR is now 7.65 percent while the three-year MCLR is 7.50 percent. Bank of Baroda said that the new loan rates will be effective from September 12.

Loans may become more expensive in October
At the same time, there is a fear that loans may become more expensive in October. Deutsche Bank estimates that the Reserve Bank may increase the repo rate by a quarter percent in the September monetary review. Its effect will be seen in the loan rates. The central bank has increased the repo rate by 1.40 percent since May this year. Inflation continues to remain above the Reserve Bank's satisfactory level of 6 percent, given that the central bank has increased the policy rates by 1.40 percent in three tranches.