ICICI Bank, PNB revise basic lending rates, EMIs to be tweaked: Check new loan rates here
Both the banks have hiked their MCLR on some of the tenors. The rates are effective from June 1, 2023.
- Jun 1, 2023,
- Updated Jun 1, 2023 6:28 PM IST
Private lender ICICI Bank has revised its marginal cost-based lending rates (MCLR) for the month of June 2023. With the revision, the interest rate on various loans, like home loans, personal loans, that depends on MCLR. MCLR is directly linked with the equated monthly instalments (EMI) of the home loan availed by the homebuyers.
ICICI Bank has reduced its one-month MCLR from 8.50 per cent to 8.35 per cent. It has also slashed its three-month MCLR by 15 basis points (bps) from 8.55 per cent to 8.40 per cent.
The bank has hiked its MCLR on six-month and one-year tenures by 5 bps to 8.75 per cent and 8.85 per cent, respectively. The rates are effective from June 1, 2023.
| Tenure | Revised MCLR |
| Overnight | 8.35% |
| One Months | 8.35% |
| Three Months | 8.40% |
| Six Months | 8.75% |
| One Year | 8.85% |
The MCLR is revised every month, taking into consideration the repo rate and other rates related to borrowing. The MCLR was created by the Reserve Bank of India (RBI) as an alternative to the base rate system. The bank cannot lend below this rate. The MCLR varies with tenor and might range from overnight to three years.
Punjab National Bank
Public lender Punjab National Bank (PNB) has also increased its marginal cost of lending rates (MCLR) by 10 bps on all tenures. The new interest rates are effective from June 1, 2023.
According to the PNB website, “The MCLR should be revised monthly by considering some factors including the repo rate and other borrowing rates. Specifically, the repo rate and other borrowing rates that were not explicitly considered under the base rate system.”
As per the PNB website, the bank’s overnight benchmark marginal cost of lending has been increased to 8.10 per cent from 8 per cent. The rates for one month, three months, and six months have been increased to 8.20 per cent, 8.30 per cent, and 8.50 per cent, respectively.
The one-year MCLR is increased to 8.60 per cent, while the three-year MCLR has been hiked to 8.90 per cent from 8.80 per cent.
| Tenor | MCLR |
| Overnight | 8.10% |
| One months | 8.20% |
| Three months | 8.30% |
| Six months | 8.50% |
| One year | 8.60% |
| Three years | 8.90% |
The bank has also revised its Repo linked lending rate (RLLR) hfrom 8.75 per cent to 9.00 per cent.
To tame inflation and bring it within the tolerance band, the central bank raised the policy repo rate cumulatively by 250 bps between May 2022 and February 2023 to 6.5 per cent.
In the first monetary policy review meeting of 2023-24, which was held in April, the central bank chose to maintain the repo rate at 6.5 per cent. This decision was taken to evaluate the consequences of the current policy rate tightening.
The RBI's next monetary policy committee meeting is scheduled to be held during June 6-8, 2023.
Also read: Maharashtra govt removes 15-year sale lock-in period for women homebuyers
Also read: Gold investment: 4 options you can look at if you love the yellow metal
Private lender ICICI Bank has revised its marginal cost-based lending rates (MCLR) for the month of June 2023. With the revision, the interest rate on various loans, like home loans, personal loans, that depends on MCLR. MCLR is directly linked with the equated monthly instalments (EMI) of the home loan availed by the homebuyers.
ICICI Bank has reduced its one-month MCLR from 8.50 per cent to 8.35 per cent. It has also slashed its three-month MCLR by 15 basis points (bps) from 8.55 per cent to 8.40 per cent.
The bank has hiked its MCLR on six-month and one-year tenures by 5 bps to 8.75 per cent and 8.85 per cent, respectively. The rates are effective from June 1, 2023.
| Tenure | Revised MCLR |
| Overnight | 8.35% |
| One Months | 8.35% |
| Three Months | 8.40% |
| Six Months | 8.75% |
| One Year | 8.85% |
The MCLR is revised every month, taking into consideration the repo rate and other rates related to borrowing. The MCLR was created by the Reserve Bank of India (RBI) as an alternative to the base rate system. The bank cannot lend below this rate. The MCLR varies with tenor and might range from overnight to three years.
Punjab National Bank
Public lender Punjab National Bank (PNB) has also increased its marginal cost of lending rates (MCLR) by 10 bps on all tenures. The new interest rates are effective from June 1, 2023.
According to the PNB website, “The MCLR should be revised monthly by considering some factors including the repo rate and other borrowing rates. Specifically, the repo rate and other borrowing rates that were not explicitly considered under the base rate system.”
As per the PNB website, the bank’s overnight benchmark marginal cost of lending has been increased to 8.10 per cent from 8 per cent. The rates for one month, three months, and six months have been increased to 8.20 per cent, 8.30 per cent, and 8.50 per cent, respectively.
The one-year MCLR is increased to 8.60 per cent, while the three-year MCLR has been hiked to 8.90 per cent from 8.80 per cent.
| Tenor | MCLR |
| Overnight | 8.10% |
| One months | 8.20% |
| Three months | 8.30% |
| Six months | 8.50% |
| One year | 8.60% |
| Three years | 8.90% |
The bank has also revised its Repo linked lending rate (RLLR) hfrom 8.75 per cent to 9.00 per cent.
To tame inflation and bring it within the tolerance band, the central bank raised the policy repo rate cumulatively by 250 bps between May 2022 and February 2023 to 6.5 per cent.
In the first monetary policy review meeting of 2023-24, which was held in April, the central bank chose to maintain the repo rate at 6.5 per cent. This decision was taken to evaluate the consequences of the current policy rate tightening.
The RBI's next monetary policy committee meeting is scheduled to be held during June 6-8, 2023.
Also read: Maharashtra govt removes 15-year sale lock-in period for women homebuyers
Also read: Gold investment: 4 options you can look at if you love the yellow metal