On Monday, the state-owned Bank of Maharashtra announced a 0.15 percent increase in the marginal cost of financing based lending rate (MCLR) across all tenors. The Bank of Maharashtra said in a regulatory filing that it has evaluated the marginal cost of funds based lending rate, which would take effect on May 7, 2022.

Meanwhile,  Karur Vysya Bank reported that the external benchmark rate has been revised from 7.15 percent to 7.45 percent. 

The benchmark one-year MCLR, which is used to calculate most personal, auto, and house loans, has been hiked to 7.40 percent from 7.25 percent previously.

The other tenors, ranging from overnight to one-three and six months, have also seen a 6.85-7.30 percent increase in MCLR. The bank also announced that the repo linked lending rate (RLLR) has been hiked from 6.80 percent to 7.20 percent per year, effective May 7, 2022.

Following the RBI's 0.40 percent boost in the repo rate to 4.40 percent last week, some banks have raised repo related lending rates. Most consumer loans, such as auto, housing, and personal, have become more expensive as the external benchmark or repo linked lending rate has risen.

In a separate filing, private sector lender Karur Vysya Bank said it had increased its external benchmark rate (Repo Linked (EBR-R) to 7.45 percent from 7.15 percent, effective May 9, 2022.

With effect from October 1, 2019, the Reserve Bank instructed all banks to connect the interest rate on all new floating rate personal or retail loans, as well as floating-rate loans to MSMEs, to an external benchmark (which is the repo rate).

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