Axis Bank has fixed its bank rate at 8.95 per cent.
Axis Bank on Monday became the latest lender to revise the marginal cost of funds-based lending rate or MCLR, the key rate below which a bank cannot lend.
Interest rates for different products such as home loan and auto loan are fixed on the basis ofupon MCLR.
So now, the overnight MCLR of Axis Bank stands revised to 8.10 per cent while for a period of three years, Axis Bank will charge an MCLR of 8.75 per cent.
Separately, the bank rate or the minimum interest rate which Axis Bank will charge from its customers, has now been fixed at 8.95 per cent.
This is with effect from April 4, 2018."As per RBI guidelines, all floating rate rupee loans sanctioned and credit limits renewed w.e.f.
April 1, 2016 are priced with reference to the Marginal Cost of Funds based Lending Rate (MCLR).
The Bank reviews and publishes the internal benchmark MCLRs on a monthly basis," Axis Bank said on its website, axisbank.com.Following are the latest marginal cost of funds based lending rates of Axis Bank: TenorMCLROvernight8.10%One month8.10%Three month8.35%Six month8.50%One year8.60%Two years8.70%Three years8.75%These rates will be valid until Axis Bank reviews them further, it noted.On June 6, theReserve Bank of India (RBI) hiked the repo rate or the rate at which it grants loans to commercial banks to 6.25 per cent.
The central bank hiked the repo rate after a period of four-and-a-half years.After the RBI announced the repo rate hike, banks such asBank of Baroda, Indian Bank and Karur Vysya hiked their MCLRs.
Large banks such asState Bank of India, ICICI Bank and Punjab National Bank had already hiked their MCLRs before the RBI announced the rate hike.