Private sector lender ICICI Bank and public lender Punjab National Bank (PNB) have recently made changes to their Marginal Cost Based Lending Rates (MCLR) affecting borrowers.
ICICI Bank’s Loan Update
Effective from June 1, ICICI Bank has implemented new MCLR rates, which can be found on their official website.
Notably, the one-month MCLR has been reduced from 8.50% to 8.35%, while the three-month MCLR has been decreased by 15 basis points (bps) from 8.55% to 8.40%.
ICICI Bank’s MCLR Increase
Alongside the reductions, ICICI Bank has also increased the MCLR for certain tenures.
Specifically, the MCLR for six months and one year has been raised to 8.75% and 8.85%, respectively, reflecting an increase of 5 bps.
This indicates that the bank will not provide loans at rates lower than these specified levels.
PNB’s Interest Rate Hike
Punjab National Bank has similarly raised the interest rates for all tenures, increasing the MCLR by 10 bps.
These revised rates came into effect on June 1, 2023. As per the bank’s official website, the overnight benchmark marginal cost of lending has been raised from 8% to 8.10%.
Additionally, the rates for one month, three months, and six months have been set at 8.20%, 8.30%, and 8.50% respectively.
The one-year MCLR has been increased to 8.60%, while the three-year MCLR has been adjusted from 8.80% to 8.90%.
Impact on EMI Payments
If you have availed a home loan based on the MCLR provided by these banks, your Equated Monthly Installment (EMI) will likely increase due to these changes.
However, for the tenures where ICICI Bank has reduced the rates, borrowers can expect a decrease in the interest paid during the loan tenure.
