Karnataka Bank MCLR Rates, Karnataka Bank Base Rate – Dec 2018

Karnataka Bank MCLR Rate

5th Dec 2018 – RBI keeps Repo Rate unchanged at 6.50%

Current MCLR rate of Karnataka Bank ranges from 8.40% to 8.95% varying by reset frequency of the loan. Karnataka Bank revises MCLR rates on a monthly basis and benchmark its interest rates for home loan and other loans to MCLR rates of different tenor.

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Tenure wise MCLR Karnataka Bank Rate Today
Overnight 8.40%
1 Month 8.45%
3 Month 8.60%
6 Month 8.65%
1 Year 8.95%
Karnataka Bank Base Rate 10.05%
Compare MCLR Base Rate Trend

Karnataka Bank Interest Rates

Karnataka Bank Interest Rates
Home Loan Interest Rates 8.70% * Floating Detail
Loan Against Property Rates 10.90% * Floating Detail
Fixed Deposit Interest Rates 3.50% to 7.40% Detail

MCLR of Karnataka Bank

Karnataka Bank revises its MCLR rate on a monthly basis. Latest MCLR rates of Karnataka Bank as announced on 01 Dec 2018 are:

  • Overnight MCLR Rate is 8.40%. The rate was last revised on 01 Jul 2018 to 8.40% from 8.35%
  • 1 Month MCLR Rate is 8.45%. The rate was last revised on 01 Jul 2018 to 8.45% from 8.40%
  • 3 Month MCLR Rate is 8.60%. The rate was last revised on 01 Nov 2018 to 8.60% from 8.50%
  • 6 Month MCLR Rate is 8.65%. The rate was last revised on 01 Nov 2018 to 8.65% from 8.55%
  • 1 Year MCLR Rate is 8.95%. The rate was last revised on 01 Aug 2018 to 8.95% from 8.90%

Karnataka Bank MCLR Rate Trend

Date Karnataka Bank MCLR
01st Dec 18
Overnight : 8.40%
1 Month : 8.45%
3 Month : 8.60%
6 Month : 8.65%
1 Year : 8.95%
01st Nov 18
Overnight : 8.40%
1 Month : 8.45%
3 Month : 8.60%
6 Month : 8.65%
1 Year : 8.95%
01st Oct 18
Overnight : 8.40%
1 Month : 8.45%
3 Month : 8.50%
6 Month : 8.55%
1 Year : 8.95%
01st Sep 18
Overnight : 8.40%
1 Month : 8.45%
3 Month : 8.50%
6 Month : 8.55%
1 Year : 8.95%
01st Aug 18
Overnight : 8.40%
1 Month : 8.45%
3 Month : 8.50%
6 Month : 8.55%
1 Year : 8.95%
01st Jul 18
Overnight : 8.40%
1 Month : 8.45%
3 Month : 8.50%
6 Month : 8.55%
1 Year : 8.90%
01st Jun 18
Overnight : 8.35%
1 Month : 8.40%
3 Month : 8.45%
6 Month : 8.50%
1 Year : 8.85%
01st May 18
Overnight : 8.35%
1 Month : 8.40%
3 Month : 8.45%
6 Month : 8.50%
1 Year : 8.80%
01st Apr 18
Overnight : 8.35%
1 Month : 8.40%
3 Month : 8.45%
6 Month : 8.50%
1 Year : 8.80%
01st Mar 18
Overnight : 8.25%
1 Month : 8.30%
3 Month : 8.35%
6 Month : 8.40%
1 Year : 8.75%
01st Feb 18
Overnight : 8.25%
1 Month : 8.30%
3 Month : 8.35%
6 Month : 8.40%
1 Year : 8.75%
01st Jan 18
Overnight : 8.25%
1 Month : 8.30%
3 Month : 8.35%
6 Month : 8.40%
1 Year : 8.75%
01st Dec 17
Overnight : 8.25%
1 Month : 8.30%
3 Month : 8.35%
6 Month : 8.40%
1 Year : 8.75%
01st Nov 17
Overnight : 8.25%
1 Month : 8.30%
3 Month : 8.35%
6 Month : 8.40%
1 Year : 8.75%
01st Oct 17
Overnight : 8.35%
1 Month : 8.40%
3 Month : 8.45%
6 Month : 8.50%
1 Year : 8.85%
01st Sep 17
Overnight : 8.35%
1 Month : 8.40%
3 Month : 8.45%
6 Month : 8.50%
1 Year : 8.85%
01st Jun 17
Overnight : 8.35%
1 Month : 8.40%
3 Month : 8.45%
6 Month : 8.50%
1 Year : 8.90%
01st May 17
Overnight : 8.40%
1 Month : 8.45%
3 Month : 8.55%
6 Month : 8.70%
1 Year : 8.90%
01st Apr 17
Overnight : 8.40%
1 Month : 8.45%
3 Month : 8.55%
6 Month : 8.70%
1 Year : 8.90%
01st Oct 16
Overnight : 8.90%
1 Month : 9.00%
3 Month : 9.05%
6 Month : 9.10%
1 Year : 9.15%
01st Apr 16
Overnight : 8.95%
1 Month : 9.05%
3 Month : 9.10%
6 Month : 9.15%
1 Year : 9.20%
  • Effective 1st April 2016, Karnataka Bank has been directed by RBI to fix its loan interest rates benchmarked to MCLR rate which is based on its marginal cost of funds. Earlier, the bank fixed its loan interest rates to Base Rate, which was based on total cost of funds of the bank. Karnataka Bank MCLR rates for different tenors range from 8.40% to 8.95%.
  • RBI allows banks to set their own MCLR Rate based on their marginal cost of funds which means the cost of raising new funds for the bank. So, Karnataka Bank decides and announces its MCLR rate regularly based on prescribed formula and policy rate changes by RBI in its monetary policy.
  • Note that the RBI does not decide the MCLR Rate of any bank. RBI only announces the repo rate, which influences the cost of raising new funds for the bank. Banks may or may not decide to change their MCLR rate in response to changes in the repo rate. For instance, Karnataka Bank may decide to bring a lower cut in their MCLR rate compared to a Repo Rate cut. If RBI cuts the repo rate by 50 basis points or 0.5%, Karnataka Bank may decide to cut its 1 Year MCLR rate only by 0.25% based on its internal funding and liquidity position. Hence, it is important to compare the MCLR rate change of Karnataka Bank with that of RBI Repo Rate and MCLR Rate changes of other banks before taking a decision to take a loan from Karnataka Bank.
  • MCLR rate can be revised by Karnataka Bank every month. However, it is not mandatory for Karnataka Bank to revise its rate every month and it may choose to retain the same rate for a longer period keeping them unchanged.

Karnataka Bank Home Loan Interest Rate and MCLR

  • Every floating rate loan sanctioned by Karnataka Bank is benchmarked to its MCLR Rate for a particular tenure, say 1 month or 3 month or 6 months.
  • Shorter duration loans such as cash credit, OD facility, personal loans are linked to short tenure MCLR rate while longer duration loans such as home loan, loan against property, vehicle loan are linked to longer duration MCLR rates.
  • The applicable rate of interest on a floating rate loan will consist of two parts - the applicable benchmark rate and the spread or margin above the benchmark.
  • Your loan from Karnataka Bank will be repriced periodically depending upon the tenure of the MCLR to which it is linked. Karnataka Bank home loan rate is benchmarked to 1 Year MCLR Base Rate which will be repriced after 1 Year. Say, you take a loan from Karnataka Bank at current 1 Year MCLR rate of 8.95% plus spread of 20 bps. So, the loan will initially be priced at 9.15%. Its next re-pricing will be done after 1 Year from now. If the 3 Month MCLR rate after 1 Year increases by 10 bps, the loan will be priced at 9.25% for the next period.
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    About Karnataka Bank

    • Karnataka Bank's registered office is located at P.O. Box 599, Mahaveera Circle, Kankanady, Mangalore-575002 India.
    • Karnataka Bank's management is led by its CEO Mr. P Jayarama Bhat.
    • Its current Base Rate is 10.25%, which was last revised on 05th Oct 15.
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    Karnataka Bank News - Dec 2018
    • 2018-04-03 : Karnataka Bank hikes MCLR by up to 10 bps
      Karnataka Bank hiked its MCLR by up to 10 basis points in all tenors. These rates will be effective from April 1, 2018. Consequently, the MCLR is now is the range of 8.35% and 8.80%.
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