Kotak Mahindra Bank cuts 1-year MCLR rate by 20 bps, hikes for other tenors

Private sector Kotak Mahindra Bank has revised upward its marginal cost of funds based lending rate for different tenors but reduced the benchmark one-year tenor rate by 20 basis points.

The MCLR (marginal cost of funds based lending rate) linked loan rates for the benchmark one-year tenor, which is used by banks to price most of consumer loans such as auto, home and personal, has been cut to 8.55 per cent from 8.75 per cent.

The revised MCLR rates have come to effect from November 16, 2022, Kotak Bank said on its website.

Banks review their MCLR rates on a monthly basis.

For other tenor loans ranging from overnight to three year, the revised rates are in the range of 7.80-9.05 per cent, according to Kotak.

In the earlier review of MCLR rates in mid-October, Kotak Mahindra Bank had revised these rates in the range of 7.70-8.95 per cent.

The hike in MCLR by the Kotak Bank follows a rate revision by the country's largest lender SBI which increased rates by up to 15 basis points across tenors.

SBI hiked the benchmark one-year tenor MCLR to 8.05 per cent with effect from November 15, 2022 as against 7.95 per cent earlier.

Base rate of Kotak Mahindra Bank with effect from Nov 16, 2022 is at 7.40 per cent, said the lender. Also, the benchmark PLR (prime lending rate) is 16.15 per cent, it added.

Base rate refers to the minimum rate below which banks are not allowed to lend.

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