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Loan Costly: Taking loan of Indian Bank will be expensive, know how much MCLR rates increased

Loan Costly: There is big news for the customers of Indian Bank because the bank has made taking loans more expensive for them. Indian Bank has increased the Marginal Cost Based Lending Rate (MCLR) further. The MCLR of the bank has increased by 0.15 percent. These increased MCLR rates of the bank are applicable from Sunday.

How much has Indian Bank increased MCLR
Indian Bank has increased the one-year benchmark MCLR from 7.40 per cent to 7.55 per cent. The bank has said that in the same ratio, the MCLR has been increased from 6.75 to 7.40 percent on loans of one day to 6 months.

Indian Bank has said in the regulatory filing that most of the consumer loan interest rates are fixed on this basis, so many of the bank’s loans will increase after this MCLR rate hike. Personal loans, auto and home loans may become costlier due to increase in MCLR.

Why debt becomes expensive due to increase in MCLR
Banks fix the interest rates for their loans based on the Marginal Cost of Lending Rate and based on these, the bank’s EMI decreases or increases. Banks also fix their MCLR based on the policy rates of Reserve Bank of India and this has an effect on loan rates. The lower the MCLR of the bank, the lower will be its loan rates.

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