Ahead of the monetary policy review, state-owned Bank of Baroda (BoB) Tuesday increased its lending rates by up to 0.2 per cent, a move that will make home, auto and other loans expensive. The bank has revised the marginal cost of funds-based lending rate (MCLR) with effect from Thursday, BoB said in a statement.
The MCLR for a three-month tenor increased to 8.50 per cent from the existing 8.30 per cent and for six-month maturity, it will go up to 8.70 per cent from the current 8.50 per cent. Interest rate on one-year tenure will go up by 0.1 per cent to 8.75 per cent.
Most of the retail loans are benchmarked against one-year MCLR. The RBI is schedule to unveil its sixth bi-monthly monetary policy on Thursday.