Bank of India, including ICICI Bank and PNB, have revised the MCLR rates on home loans and other tenure loans, due to which the interest rates of all types of loans have increased. In such a situation, customers will have to pay more EMI.
New Delhi: ICICI Bank, Punjab National Bank and Bank of India, which are among the major banks of the country, have increased the interest rates on home loans of almost all tenures. Due to this, lakhs of loan holders of all three banks have got a big blow. Customers will now have to pay more EMI of the loan.
ICICI Bank, Punjab National Bank and Bank of India have revised their marginal cost based lending rate ie MCLR on all types of loans including home loans of all tenures. According to bank websites, the new interest rates have been made effective from 1 August 2023. Explain that Marginal Cost of Funds Based Lending Rate i.e. MCLR is the minimum lending rate below which no bank can lend. The interest rate on the loan is decided through MCLR.
ICICI Bank
ICICI Bank has increased MCLR by 5 bps for all tenures. According to the website of ICICI Bank, overnight, the one-month MCLR rate has been increased from 8.35 percent to 8.40 percent. Three months, six months MCLR in ICICI Bank has been increased to 8.45 percent and 8.80 percent respectively. At the same time, the one-year MCLR rate has been increased from 8.85 percent to 8.90 percent.
Punjab National Bank
According to PNB Bank’s website, the overnight MCLR has been kept at 8.10 per cent. At the same time, the MCLR rate on one month’s tenure is 8.20 percent. Three months, six months MCLR in PNB is 8.30 percent and 8.50 percent respectively. Whereas, the MCLR for one year is now 8.60 per cent and for three years is 8.90 per cent.
Bank of India
Bank of India has revised the MCLR rates and increased the rates on select tenors. According to the Bank of India website, the MCLR for overnight tenure is 7.95 per cent, the MCLR rate for one month is 8.15 per cent. Bank of India has kept three months, six months MCLR rate at 8.30 percent and 8.50 percent respectively. At the same time, MCLR has now been fixed at 8.70 per cent for one year and 8.90 per cent for three years.
With the increase in MCLR, the EMI also increases.
Marginal Cost Lending Rate ie MCLR is the basic minimum rate on the basis of which banks give loans to customers. MCLR was established by the RBI in 2016 with the aim of fixing the interest rates of various types of loans. It acts as a benchmark rate for banks to use while lending at a fair and open interest rate. If the bank makes any kind of change in MCLR, then the cost of loan i.e. interest rate is also affected, which directly affects the customer’s pocket in the form of higher EMI.
