Axis Bank Revises Key Lending Rates; EMIs Set To Rise
Axis Bank on Monday became the latest lender to revise the marginal cost of funds-based lending rate or MCLR, the key rate below which a bank cannot lend. Interest rates for different products such as home loan and auto loan are fixed on the basis of upon MCLR. So now, the overnight MCLR of Axis Bank stands revised to 8.10 per cent while for a period of three years, Axis Bank will charge an MCLR of 8.75 per cent. Separately, the bank rate or the minimum interest rate which Axis Bank will charge from its customers, has now been fixed at 8.95 per cent. This is with effect from April 4, 2018.
"As per RBI guidelines, all floating rate rupee loans sanctioned and credit limits renewed w.e.f. April 1, 2016 are priced with reference to the Marginal Cost of Funds based Lending Rate (MCLR). The Bank reviews and publishes the internal benchmark MCLRs on a monthly basis," Axis Bank said on its website, axisbank.com.
Following are the latest marginal cost of funds based lending rates of Axis Bank:
| Tenor | MCLR |
|---|---|
| Overnight | 8.10% |
| One month | 8.10% |
| Three month | 8.35% |
| Six month | 8.50% |
| One year | 8.60% |
| Two years | 8.70% |
| Three years | 8.75% |