The Bank of Maharashtra announced a revision in its Marginal Cost of Funds-Based Lending Rate (MCLR) for select tenors, effective December 23, 2024. The MCLR sets the minimum interest rate a bank charges for lending and serves as the floor rate for loan interest rates.
Updated Rates:
- Overnight: Unchanged at 8.20%
- One Month: Unchanged at 8.40%
- Three Months: Revised to 8.65% from 8.60%
- Six Months: Revised to 8.85% from 8.80%
- More than Six Months: Unchanged at 9.10%
This revision ensures alignment with funding costs and provides clarity for borrowers regarding applicable loan interest rates.
About MCLR:
The Marginal Cost of Funds-Based Lending Rate (MCLR) represents the minimum interest rate below which a bank cannot lend, barring specific exceptions allowed by the Reserve Bank of India (RBI). It acts as the benchmark for loan pricing and is fixed for borrowers unless a regulatory change dictates otherwise.
