Public sector lender Punjab National Bank (PNB) has increased its marginal cost of funds-based lending rate (MCLR) by 5 basis points (0.05%).
The revised rates are effective from August 1, 2024.
New MCLR Rates (Effective August 1, 2024)
New MCLR Rates are as below:
- Overnight: 8.30% (Previously 8.25%)
- One month: 8.35% (Previously 8.30%)
- Three months: 8.55% (Previously 8.50%)
- Six months: 8.75% (Previously 8.70%)
- One year: 8.90% (Previously 8.85%)
- Three years: 9.20% (Previously 9.15%)
Impact on Home Loans, see below.
Impact on Home Loans
With the increase in MCLR, borrowers with loans linked to this rate will see a rise in their Equated Monthly Installments (EMIs).
The MCLR is the minimum interest rate below which banks cannot lend, influencing the interest rates on various loans, including home loans.
Comparison with Other Banks
Last month, India’s largest public sector lender, State Bank of India (SBI), also updated its MCLR rates,
which are effective from July 15, 2024.
