The equated monthly instalments (EMIs) which have already increased significantly last May, will go up further as the banks have started hiking lending rates. Many borrowers are likely to feel the pinch of such an increase in EMIs.

ICICI Bank, Punjab National Bank, and Bank of India have revised their marginal cost-based lending rate (MCLR) on loans . The revised interest rates are effective from 1 August, as per the bank websites.

What is MCLR?
The MCLR, or marginal cost of funds-based lending rate, is aimed to facilitate the calculation of the minimal interest rate for various types of loans that banks offer. In simple terms, it is the lowest rate at which banks are permitted to give loans to their customers. The benchmark one-year MCLR, is used to price most consumer loans such as auto, personal, and home.

ICICI Bank hikes MCLR rates with effect from 1 August
ICICI Bank has hiked its marginal cost-based lending rates (MCLR). The new interest rates are effective from 1 August 2023, the lender noted on its website.

Overnight 8.40%

One Month 8.40%

Three Months 8.45%

Six Months 8.80%

One Year 8.90%

Punjab National Bank revises MCLR rates with effect from 1 August
Punjab National Bank has kept the MCLR rates unchanged for August month. The one-year MCLR is now at 8.60 percent for three years.

Overnight 8.10%

One month 8.20%

Three months 8.30%

Six months 8.50%

One year 8.60%

Three years 8.90%

Bank of India hikes MCLR rates with effect from 1 August
Bank of India has hiked rates on select tenor. According to the Bank of India website, the one-year MCLR is now at 8.70 percent, and 8.90 percent for three years.

Overnight 7.95%

1 Month 8.15%

3 Month 8.30%

6 Month 8.50%

One year 8.70%

Three years 8.90%

The Reserve Bank of India’s (RBI) monetary policy committee (MPC) in its June MPC decided to keep the repo rate unchanged at 6.5%. Since May 2022, the repo rate has already been increased by a total of 250 basis points in an effort to bring down inflation.

Source By: livemint

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