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ICICI Bank and Punjab National Bank (PNB) increase marginal cost-based lending rates (MCLR), EMIs to rise


Private sector lender ICICI Bank and public lender Punjab National Bank (PNB) have hiked their marginal cost-based lending rates (MCLR), even though the Reserve Bank of India (RBI) retained the policy rate on August 10. The move will make EMIs linked to MCLR expensive. The one-year tenor MCLR is the rate against which most consumer loans are tied. The new interest rates are effective from 1 September 2023,

ICICI Bank MCLR rates with effect from 1 September

ICICI Bank has hiked MCLR by 5 basis points (bps) across all tenures. After the latest revision, ICICI Bank’s overnight, one-month MCLR is 8.45 percent. The three-month, and six-month MCLRs were at 8.50 percent, and 8.85 percent, respectively. The one-year MCLR is 8.95 percent.

Overnight 8.45%

One Month 8.45%

Three Months 8.50%

Six Months 8.85%

One Year 8.95%

PNB MCLR rates with effect from 1 September

Punjab National Bank (PNB) has also increased its marginal cost of lending rates (MCLR) by 5 bps on all tenures. 

As per the PNB website, the bank’s overnight benchmark marginal cost of lending has been increased to 8.15 per cent from 8.5 per cent. The rates for one month, three months, and six months have been hiked to 8.25 per cent, 8.35 per cent, and 8.55 per cent, respectively. The one-year MCLR has increased to 8.65 per cent, while the three-year MCLR has been hiked to 8.95 per cent from 8.90 per cent.

Overnight 8.15%

One month 8.25%

Three months 8.35%

Six months 8.55%

One year 8.65%

Three years 8.95%

Should you prepay your home loan?

You may consider prepaying your home loan, depending on your financial condition

“If you have a large quantum of a home loan or the bank is charging you a higher home loan rate, then it may be a good idea to prepay your home loan. However, you may continue with the home loan if the bank charges you a lower home loan rate and you avail of significant tax benefits on home loan principal and interest,” said Archit Gupta.

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Updated: 02 Sep 2023, 02:46 PM IST

Joanna Swanson

Joanna Swanson is Europe correspondent at the Thomson Reuters Foundation based in Brussels covering politics, culture, business, climate change, society, economies and inclusive tech. With specific focus in breaking news, she has covered some of the world's most significant stories.