Home loan rates: ICICI Bank and Bank of India have revised their marginal cost-based lending rate (MCLR) on loans across tenures. The rates were made effective from August 1, 2023. Punjab National Bank, on the other hand, has kept its basic lending rates at the same level.
The MCLR is revised every month, taking into consideration the repo rate and other rates related to borrowing. The MCLR was created by the Reserve Bank of India (RBI) as an alternative to the base rate system.
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The bank cannot lend below this rate. The MCLR varies with tenor and might range from overnight to three years. This would mean that equated monthly installment on all loans will go up.
Bank of India
Bank of India has raised its marginal cost-based lending rates on select tenor. As per the bank’s notification, the one-year MCLR, which is effective from August 1, is at 8.70 per cent, while for three years, it is 8.90 per cent.
The latest rates are:
Overnight 7.95%
1 Month 8.15%
3 Month 8.30%
6 Month 8.50%
One year 8.70%
Three years 8.90%
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ICICI Bank
ICICI Bank has also hiked its marginal cost-based lending rates (MCLR) by 5 basis points (bps) across all tenures. The private lender’s website noted that the new interest rates are already effective from 1 August 2023. The bank had revised its basic lending rates in June this year.
The revised rates are:
Overnight 8.40%
One Month 8.40%
Three Months 8.45%
Six Months 8.80%
One Year 8.90%
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Punjab National Bank
Punjab National Bank has kept its MCLR rates at the same level for August. In June, the public lender had raised its MCLR by 10 bps on all tenures.
As per the PNB website, the bank’s overnight benchmark marginal cost of lending is 8.10 per cent. The rates for one month, three months, and six months are 8.20 per cent, 8.30 per cent, and 8.50 per cent, respectively.
The one-year MCLR is 8.60 per cent, while the three-year MCLR is 8.90 per cent.
Overnight 8.10%
One month 8.20%
Three months 8.30%
Six months 8.50%
One year 8.60%
Three years 8.90%
