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Axis Bank MCLR Rate Latest Update: Axis Bank in a statement on Wednesday said it has hiked its marginal cost of lending rate (MCLR) by as much as 35 basis points. Axis Bank said the new marginal cost of lending rate, which is a key point in deciding various loan rates, will be effective from May 18. The bank customers must note that one basis point is equal to one-hundredth part of a percentage point. This implies that the loan interests will increase with the Axis Bank MCLR hike.
With the latest MCLR rate hikes, the overnight and one-month MCLR rate of Axis Bank now stand at 7.55 per cent. Prior to this, the MCLR rate was 7.20 per cent. Notably, the MCLR for three months, has been hiked to 7.65 per cent from 7.30 per cent, while for six months Axis Bank MCLR rate has been increased from 7.35 per cent to 7.70 per cent.
In the similar manner, the MCLR for one year has been increased to 7.75 per cent from 7.40 per cent. The MCLR for two years has also increased to 7.85 per cent from 7.50 per cent. The key lending rate for three-year tenure has also gone up to 7.90 per cent from 7.55 per cent.
The MCLR rate hike in Axis Bank comes two weeks after the Reserve Bank of India hiked its repo rate by 40 basis points or 4.40 per cent in an off-cycle monetary policy committee meeting on May 4. The move was taken to manage the rising inflation in the country. After the increase in the repo rates by the RBI, many private and public sector banks joined in to hike their MCLRs.
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