If you are planning to take a loan, then you should first know about the interest rates. Because both ICICI Bank and Punjab National Bank (PNB) have revised their Marginal Cost Based Lending Rate (MCLR), which is an important factor affecting loan interest rates. Notably, ICICI Bank has implemented a reduction in interest rates for certain tenures, while PNB has opted to increase its rates across all tenures. This change in rates has been implemented from June 1, 2023.
The revised MCLR rates for ICICI Bank are made available on the bank’s website. ICICI Bank has reduced the one month MCLR from 8.50% to 8.35%, representing a reduction of 15 basis points (bps). Along with this, a decrease has also been seen in the three-month MCLR from 8.55% to 8.40%.
ICICI Bank has decided to increase the MCLR for a certain period. To clarify, the bank has increased the MCLR to 8.75% and 8.85% for tenors of 6 months and one year. The bank will not be able to give loan at interest rates less than these specified rates.
Know the loan interest rates
Punjab National Bank has increased its interest rates for all tenors. The revised rates will be effective from June 1, 2023. The bank’s overnight benchmark marginal cost of lending has increased from 8% to 8.10%, as mentioned on their official website. Apart from this, the rates for one month, three months and six months have been increased to 8.20%, 8.30% and 8.50% respectively. The one-year MCLR has been increased to 8.60%, while the three-year MCLR has now increased to 8.90% from 8.80%.
read this also – Do not withdraw PF for 3 years after leaving the job, otherwise you will not get interest
Your EMI will increase
Considering the impact on your Equated Monthly Installment (EMI), it is important to note that if you have availed a home loan based on the MCLR tenure provided by these banks, your EMI will inevitably increase. However, the interest will come down for the tenures on which ICICI Bank has reduced the rates, which may provide some relief to the borrowers.