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Karnataka Bank MCLR Rates, Karnataka Bank Base Rate – Jun 2021

Karnataka Bank MCLR Rate

Last Updated 04th May 2021

Current MCLR rate of Karnataka Bank ranges from 8.20% 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 tenors.

Tenure wise MCLR Karnataka Bank Rate Today
Overnight 8.95%
1 Month 8.65%
3 Month 8.50%
6 Month 8.30%
1 Year 8.20%
Karnataka Bank Base Rate 8.70%

Karnataka Bank Interest Rates

Karnataka Bank offers the following loans to its customer on these rates currently:

Home Loan Interest Rates 8.55% * Floating Detail
Loan Against Property Rates 10.82% * Floating Detail
Fixed Deposit Interest Rates 3.40% to 5.70% 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 Feb 2021 are:

  • Overnight MCLR Rate is 8.95%.
  • 1 Month MCLR Rate is 8.65%.
  • 3 Month MCLR Rate is 8.50%.
  • 6 Month MCLR Rate is 8.30%.
  • 1 Year MCLR Rate is 8.20%.
  • 2 Year MCLR Rate is 0.00%.
  • 3 Year MCLR Rate is 0.00%.
  • 5 Year MCLR Rate is 0.00%.

Karnataka Bank MCLR Rate Trend

Date Karnataka Bank MCLR
01st Feb 21 Overnight : 8.95%
1 Month : 8.65%
3 Month : 8.50%
6 Month : 8.30%
1 Year : 8.20%
01st Oct 20 Overnight : 8.90%
1 Month : 8.60%
3 Month : 8.45%
6 Month : 8.25%
1 Year : 8.15%
01st Sep 20 Overnight : 8.20%
1 Month : 8.30%
3 Month : 8.50%
6 Month : 8.65%
1 Year : 8.95%
01st Jul 20 Overnight : 8.35%
1 Month : 8.45%
3 Month : 8.65%
6 Month : 8.80%
1 Year : 9.10%
  • 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 8.20% 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 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.
  • As per the latest regulations given by RBI, with effect from April 1, 2019, all floating interest rates on retail loans are to be linked to external benchmark lending rates. These could be the RBI's repo rate, three-month treasury bill yield, six-month treasury bill yield or other benchmark rate published by the Financial Benchmarks India Pvt Ltd.This was done in view to promote the easier transmission of reduced interest rates to customers, which was not well done when rates were linked to MCLR.

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.

Compare Karnataka Bank MCLR Rates with Other Banks

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. Mahabaleshwara M. S.
  • Its current Base Rate is 8.70%, which was last revised on 01st Jan 21.

FAQs

What is the MCLR of Karnataka Bank?

Karnataka Bank MCLR ranges between 8.20% to 8.95% for a tenure ranging between 1 month to 5 years.

What is the current Karnataka Bank MCLR rate?

Current Karnataka Bank, overnight tenure is 8.95%, 1 month mclr is 8.65% , three month mclr is 8.50%, six month mclr is 8.30%, one year tenure is 8.20% and two year tenure is 0.00%.

What is Karnataka Bank base rate?

Currently, Karnataka Bank offers loans at a base rate of 8.70%.


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Karnataka Bank News - Jun 2021
  • 2021-02-04 : Revised MCLR for Karnataka Bank
    Karnataka Bank revised its MCLR with effect from 1 February 2021. The one-year MCLR stands at 8.20%. The overnight and one-month MCLR stands at 8.95% and 8.65%, respectively. The three months MCLR stands at 8.50% and six months MCLR stands at 8.30%.
  • 2020-01-03 : Karnataka Bank cut its MCLR by 5bps
    Karnataka Bank revised its MCLR. The one-year MCLR stands at 9.15% from earlier 9.20%. The overnight and one-month MCLR stands at 8.40% and 8.50%, respectively. The three months MCLR stands at 8.70% and six months MCLR stands at 8.85%. These rates are in effect from 1 January 2020.
  • 2019-09-03 : Karnataka Bank reduces MCLR by 10bps
    With effect from September 1, 2019, Karnataka bank will reduce its MCLR by 10 basis points. However, this reduction has been done only on the tenure of one year. The MCLR is thus reduced to 9.25 percent, which earlier was at 9.35 percent.
  • 2019-01-02 : Karnataka Bank raises MCLR by 5 basis points
    Karnataka Bank has raised its Marginal Cost of Funds Based Lending Rate (MCLR) by 5 basis points across all tenure for the month of December. It will make retail loans costlier for the customers. Now six-month MCLR stands at 8.75% and that of one year at 9.10%. The revised rates are effective from January 1, 2019.
  • 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%.
*Terms and conditions apply. Credit at sole discretion of lender, which is subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and collected from public sources. Read More
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