Mumbai: The second-largest public sector bank in the country, Punjab National Bank (PNB) has increased their Marginal Cost of Lending Rate (MCLR). The lending rate is hiked by 5 basis points. After the hike the equated monthly instalments (EMIs) of all retail loans including car loans, education loans, personal loans and home loans will go up.
The Marginal Cost of Funds Based Lending Rate (MCLR) serves as a fixed lending rate that banks use to determine the interest rates for car loans, home loans, education loans, and more MCLR is the minimum rate of interest banks are allowed to give out loans to its customers. It is a benchmark interest rate and it dictates the lower limit of the interest rate for a loan. Any changes in MCLR rates by the bank directly affect the interest rates and Equated Monthly Installments (EMIs) for customers.
Also Read: Private sector bank revises bulk fixed deposit interest rates: Details
PNB’s overnight MCLR surged from 8.10% to 8.15%. The one-month MCLR climbed from 8.20% to 8.25% and the three-month MCLR increased from 8.30% to 8.35%.
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