State-owned public sector bank, Bank of Baroda (BoB) on Tuesday increased lending rates by up to 0.2%, a step which will make auto, home and other loans dearer for its customers.

The RBI is scheduled to announce its sixth bi-monthly monetary policy outcome on Thursday.

In a statement Bank of Baroda said, the bank has revised the marginal cost of funds-based lending rate (MCLR) with effect from Thursday.

The new revised MCLR rate for one-year tenure has been increased by 0.1% to 8.75%, while for the 3-month and 6-month tenure, lending rate now stand at 8.5% and 8.7%, with an increase of 0.2% each on both the tenures.

It is to be noted that most retail loans are benchmarked against one-year MCLR.

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