Punjab National Bank raises MCLR: Loans, EMIs to get costlier

PNB MCLR hike: PNB has increased its overnight MCLR from 8 per cent to 8.1 per cent.

PNB MCLR hike: This is applied to home loans, auto loans, and personal loans. With the increase in MCLR, the EMI (equivalent monthly installment) on loans gets costlier, image- PTI

PNB MCLR hike: Public sector lender Punjab National Bank (PNB) has hiked its Marginal Cost of Fund Based Lending Rates (MCLR)—the minimum lending rate below which a bank is not permitted to lend—by 10 basis points (bps). The new rates will be effective today, June 1, 2023.

The MCLR is revised monthly, taking into consideration the repo rate and other rates related to borrowing.

PNB MCLR hike: rate slab

PNB has increased its overnight MCLR from 8 per cent to 8.1 per cent. The one-month MCLR increased from 8.1 per cent to 8.2 per cent, and its three-month MCLR increased from 8.2 per cent to 8.3 per cent. The bank hiked its six-month MCLR from 8.4 per cent to 8.5 per cent and its one-year MCLR was hiked from 8.5 per cent to 8.6 per cent. Also, the bank's three-year MCLR increased from 8.8 per cent to 8.9 per cent.

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PNB MCLR hike: who will be impacted?

MCLR was introduced in April 2016. It refers to the minimum interest rate below which financial institutions can't lend money, except in certain cases. This is applied to home loans, auto loans, and personal loans. With the increase in MCLR, the EMI (equivalent monthly installment) on loans gets costlier.