ICICI Bank, Bank of India hike their basic lending rates for August

Published : 3 August 2023
Updated : 8 May 2024
ICICI Bank, Bank of India hike their basic lending rates for August

New Delhi: For loans of all tenures, ICICI Bank and Bank of India have updated their marginal cost-based lending rate (MCLR). The prices became valid on August 1, 2023. The basic loan rates of Punjab National Bank, on the other hand, remain the same.

Every month, the MCLR is updated to reflect the repo rate as well as other borrowing-related rates. The Reserve Bank of India (RBI) developed the MCLR as a replacement for the base rate mechanism.

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 installments on all loans will go up.

Bank of India 

The marginal cost-based loan rates for a few tenors have increased at the Bank of India. In accordance with the bank's statement, the three-year MCLR is 8.90%, while the one-year MCLR is 8.70% as of August 1.

Current rates in the Bank of India are mentioned below:

  • Night time 7.95%

  • 1 Month 8.15%

  • 3 Month 8.30%

  • 6 Month 8.50%

  • Annual 8.70%

  • 3.0 years, 8.90%

Axis Bank

Additionally, ICICI Bank raised all of its marginal cost-based lending rates (MCLR) by 5 basis points (bps). The increased interest rates are already in force as of August 1, 2023, according to the website for the private lender. In June of this year, the bank revised its benchmark lending rates.

The new prices are:

  • Nighttime 8.40%

  • Monthly 8.40%

  • 8.45% for three months

  • 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 percent. The rates for one month, three months, and six months are 8.20 percent, 8.30 percent, and 8.50 percent, respectively.

The one-year MCLR is 8.60 percent, while the three-year MCLR is 8.90 percent.

  • Overnight 8.10%

  • One month 8.20%

  • Three months 8.30%

  • Six months 8.50%

  • One year 8.60%

  • Three years 8.90%