Mumbai: Bank of Baroda has announced an increase in its Marginal Cost of Funds Based Lending Rate (MCLR) by up to 20 basis points across select tenures, a move that could make borrowing costlier for customers with loans linked to the benchmark.
The revised interest rates will come into effect from November 12, 2026, according to a regulatory filing submitted to the BSE and National Stock Exchange (NSE) on Monday.
Lending Rates Revised
The public sector lender has increased its one-month MCLR by five basis points from 7.95 percent to 8.00 percent, while the three-month rate has been raised by 20 basis points from 8.30 percent to 8.50 percent.
Similarly, the six-month MCLR has increased by 20 basis points from 8.50 percent to 8.70 percent.
The one-year MCLR, an important benchmark for certain retail loans, has been revised upwards by 10 basis points from 8.75 percent to 8.85 percent.
However, the overnight MCLR remains unchanged at 7.85 percent, providing some stability for borrowers linked to shorter lending tenures.
Impact On Borrowers
The revision could affect customers holding home loans, personal loans and other credit facilities linked to Bank of Baroda's MCLR.
Borrowers whose loans are linked to the revised benchmarks may experience higher interest costs when their applicable reset dates arrive.
For floating-rate loans, the impact could appear through higher monthly instalments or an extension of repayment tenure, depending on individual loan agreements.
However, customers with loans linked to external benchmarks, including the RBI's repo rate, will not automatically face changes because of this MCLR revision.
Regulatory Disclosure
Bank of Baroda disclosed the revised lending rates under Regulation 30 of the Securities and Exchange Board of India's Listing Obligations and Disclosure Requirements Regulations, 2015.
The filing, signed by Company Secretary S Balakumar, confirms the changes across five lending tenures.
The bank has not specified the reasons behind the revision in its regulatory disclosure.
Borrowers should review their loan agreements and applicable reset dates to understand whether the revised rates will affect their repayments.
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