ICICI Bank, Bank of India hike their basic lending rates for August, PNB keeps them at same level; check details

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.  

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% 

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% 

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% 

Also read: Top 50 wilful defaulters, including Mehul Choksi’s Gitanjali Gems, owe Rs 87,295 crore to banks: Finance Ministry 

Also read: Loan rates to rise? SBI hikes lending rate by 5 bps across tenures from July 15