EMIs to shoot up as banks hike lending rates

Mumbai: The equated monthly instalments (EMIs)  of loans will go up as leading banks in the country have increased the lending rates. 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.

The basic minimum rate at which a bank can give consumers loans is known as the marginal cost of funds-based lending rate or MCLR. The Reserve Bank of India (RBI) has established MCLR in 2016. It was introduced to determine the interest rates of different types of loans. Borrowers’ EMI will get expensive for those who take loans against the MCLR. There is a reset-period for MCLR-based loans, after which the rates get revised for the borrower. The benchmark one-year MCLR, is used to price most consumer loans such as auto, personal, and home.

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ICICI Bank hikes MCLR rates with effect from 1 August:

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:

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:

Overnight 7.95%

1 Month 8.15%

3 Month 8.30%

6 Month 8.50%

One year 8.70%

Three years 8.90%