Bank loan: In a recent development, both ICICI Bank, a private sector lender, and Punjab National Bank (PNB), a public lender, have made revisions to their Marginal Cost Based Lending Rates (MCLR), a significant factor affecting loan interest rates. Notably, ICICI Bank has implemented a reduction in interest rates for certain tenures, while PNB has chosen to increase its rates across all tenures. This adjustment in rates has been put into effect as of June 1, 2023.
For ICICI Bank, the revised MCLR rates have been made available on the bank's website. To provide a clearer picture, let's look into the specifics. ICICI Bank has successfully lowered the one-month MCLR from 8.50% to 8.35%, showcasing a 15 basis points (bps) reduction. Additionally, the three-month MCLR has also witnessed a decrease from 8.55% to 8.40%.
On the other hand, ICICI Bank has also decided to increase the MCLR for certain tenures. To elucidate, the bank has raised the MCLR to 8.75% and 8.85% for six-month and one-year tenures, respectively. As a result, it is important to note that the bank will not be able to offer loans at interest rates lower than these specified rates.
Similarly, Punjab National Bank has followed suit by increasing its interest rates across all tenures. The revised rates took effect on June 1, 2023. The bank's overnight benchmark marginal cost of lending has risen from 8% to 8.10%, as stated on their official website. Furthermore, the rates for one month, three months, and six months have experienced an increase to 8.20%, 8.30%, and 8.50% respectively. The one-year MCLR has been raised to 8.60%, while the three-year MCLR now stands at 8.90%, up from 8.80%.
Considering the impact on your Equated Monthly Installment (EMI), it is important to note that if you have obtained a home loan based on the MCLR tenures provided by these banks, your EMI will inevitably increase. However, it is worth mentioning that the interest during the tenures on which ICICI Bank has reduced rates will witness a decrease, which may provide some respite for borrowers.
Read more: LIC Jeevan Labh: Invest Rs 256 per-day in this scheme and get Rs 54 lakh
