This Mumbai-based bank hikes MCLR effective from 6 June, EMIs to go up

Mumbai-based private sector lender, DCB Bank on Friday increased the Marginal Cost of Funds based Lending Rate (MCLR) by 23 basis points across the tenors. The new interest rates will come into effect from June 6. With the hike in benchmark lending rate, EMIs on term loans are expected to go up ahead.

In its regulatory filing, the bank revealed that one-year MCLR will be at 9.46% from June 6 compared to the current rate of 9.23%.

Three months and six months MCLR has been increased to 9.21% and 9.41% compared to currently charged 8.98% and 9.18% respectively.

One-month and overnight MCLR will be at 8.51% each from June 6 compared to the current 8.28% each.

DCB Bank shares closed at ₹85.50 apiece down by 2.95% on BSE.

MCLR is the benchmark rate below which the lenders are not allowed to lend. The majority of banks do not offer rates on term loans lower than the MCLR. However, many banks have linked term loans like home loans and personal loans to external benchmark lending rates.

DCB Bank, a new generation private sector bank, has over 400 branches across India. It is professionally managed and governed. DCB Bank has contemporary technology and infrastructure, including state-of-the-art internet banking for personal as well as business banking customers.