Bank of India MCLR ranges from 7.95% to 8.85% for different tenures. BOI MCLR is the minimum interest rate below which the bank cannot charge interest rate for a specific loan. These MCLR rates are the deciding factor in determining interest rates for different loans.
The Marginal Cost of the Fund-Based Lending Rate (MCLR) is an internal reference rate fixed by the Reserve Bank of India (RBI) for banks. This rate helps banks to decide the minimum rate of interest on various loan types. Banks are not allowed to lend below the MCLR, or else they will have to face strict regulatory action.
Following are current BOI MCLR and MCLR rates of other top banks in India:
|Bank Name||Overnight||1 Month||3 Months||6 Months||1 Year||2 Years||3 Years|
|Bank of India||7.95%||8.15%||8.25%||8.45%||8.65%||NA||8.85%|
|Bank of Baroda||7.95%||8.20%||8.30%||8.40%||8.60%||NA||NA|
|IDFC FIRST Bank||8.85%||8.85%||9.20%||9.60%||9.85%||NA||NA|
|Central Bank of India||7.80%||7.80%||8.15%||8.35%||8.45%||NA||NA|
|Indian Overseas Bank||7.70%||7.75%||8.05%||8.20%||8.30%||8.40%||8.45%|
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Currently, Bank of India MCLR rate ranges between 7.95% to 8.85% for different tenures with effect from 1st July 2023. These rates will be valid till the next review by the bank. Bank of India is a reputed public sector bank in India that offers a wide range of lending and banking products and services. The bank has revised its MCLR in June, which makes lending products affordable for its customers.
BOI MCLR rate is the minimum interest rate below which the bank cannot charge for a specific loan product.
Bank of India revises its MCLR every month on the 1st. Below are the current MCLR of Bank of India with effect from 01.07.2023:
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Below is the Bank of India MCLR rate trend in the year 2021 - 2023:
|Last MCLR Updated Date||Tenure||MCLR|
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Current MCLR Rate of Bank of India with effect from 01st July, 2023 are mentioned below:
|Tenure||ICICI Bank MCLR Rate|
The above MCLR rate of Bank of India are not applicable anymore as the bank charges interest rates based on the Repo Linked Benchmark Lending Rate (RBLR) now, which is 9.25% w.e.f. 01.07.2023:
Following are the current Bank of India home loan interest rates linked with RBLR:
|CIBIL Score||Interest Rates (p.a.) for Salaried||Interest Rates (p.a.) for Non-Salaried|
|Star Home Loan/ Star Smart Home Loan/ Star Diamond Home Loan|
|760 & above||8.45% - 8.65% (no concession for women)||8.45% - 8.65% (no concession for women)|
|725 to 759||8.55% - 8.75% (no concession for women)||8.55% - 8.75% (no concession for women)|
|675 to 724||8.65% - 8.85% (no concession for women)||8.65% - 8.85% (no concession for women)|
|Below 675||10.55% for women & 10.60% for others||10.70% for women & 10.75% for others|
|-1 & 0||8.95% (no concession for women)||8.95% (no concession for women)|
|Home Loans linked with CIBIL Score (in case of Individuals)|
|9.25% (irrespective of loan amount & for individuals)|
|760 & above||9.35% (no concession for women)||9.35% (no concession for women)|
|725 to 759||9.50% for women & 9.55% for others||9.60% for women & 9.65% for others|
|675 to 724||9.70% for women & 9.75% for others||10.30% for women & 10.35% for others|
|Below 675||9.75% for women & 9.80% for others||10.35% for women & 10.40% for others|
|-1 & 0||9.60% for women & 9.65% for others||9.70% for women & 9.75% for others|
|Home Loans presently not linked to CIBIL Score (entities other than individuals & Star Pravasi Loan)|
|For Star Pravasi (Women Beneficiary)||8.65%|
|For Others (Star Pravasi, Corporates, etc.)||8.75%|
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Bank of India MCLR Rate today is 8.65% for 1-year tenure with effect from 01st July 2023. This rate is valid till the next review, i.e. 1st August 2023. The 1-year BOI MCLR rate is updated every month on the 1st. Even a small change in this rate can have a significant impact on your Bank of India Home Loan interest rates or other lending product rate of th bank, linked to MCLR. Hence, you must track the updated MCLR rates of the bank each month. A change in the MCLR can affect your loan Equated Monthly Instalments (EMIs) as well.
There has been a significant fluctuation in the MCLR rates of the Bank of India in the last couple of years. Following is the Bank of India MCLR rate history for the year 2022-2023:
|Last MCLR Updated Date||MCLR|
|01.07.2023||7.95% - 8.85%|
|01.06.2023||7.95% - 8.85%|
|01.05.2023||7.90% - 8.80%|
|01.04.2023||7.90% - 8.80%|
|01.03.2023||7.50% - 8.70%|
|01.02.2023||7.50% - 8.60%|
|01.01.2023||7.30% - 8.50%|
|01.12.2022||7.30% - 8.35%|
|01.11.2022||7.05% - 8.10%|
|01.10.2022||6.95% - 8%|
|01.09.2022||6.85% - 7.80%|
|01.08.2022||6.80% - 7.80%|
|01.07.2022||6.70% - 7.70%|
|01.06.2022||6.70% - 7.70%|
|01.05.2022||6.60% - 7.70%|
|01.04.2022||6.60% - 7.70%|
|01.03.2022||6.60% - 7.70%|
|01.02.2022||6.60% - 7.70%|
|01.01.2022||6.60% - 7.70%|
The current MCLR rate of Bank of India w.e.f. 01.07.2023 varies between 7.95% and 8.85% for different tenures.
The 1 year MCLR of Union Bank of India is 8.65% from 11th June 2023 to 10th July 2023.
Below are the current MCLR rates of Bank of India for different tenure w.e.f. 01.07.2023:
Some banks provide the facility to switch your home loan from base rate to MCLR by charging nominal conversion fees. If your bank does not offer this service, you can always transfer your current home loan outstanding to another bank or financial institution.
MCLR is calculated by considering the tenure of the loan. The risk involved increases as the tenure increases. To cover this risk, lenders charge a premium, which is also considered when determining the MCLR interest rate.
The Base Rate is based on the average cost of funds, whereas the MCLR is based on the marginal cost of funds. The calculation of Base Rate is done by considering the profit margin or minimum rate of return, whereas MCLR is calculated considering tenure premium.
MCLR is the abbreviation for Marginal Cost of Funds Based Lending Rate. Banks use MCLR for calculating the interest rate on various loans, including home loans. MCLR was introduced by RBI to bring in more transparency to the way banks determined lending rates. Another reason was to permit seamless and quick adjustment of the lending rate of interest based on policy changes by the RBI.
Functionally they both are same, as both of them function as the lower limit of interest rates that a bank or other financial institutions can charge the borrower.