After hiking deposit rate, banks across both the private and public counter are now seen to increase marginal cost based lending rates and this time around the fraud-hit PNB has raised MCLR rate with effect from June 1, 2018 by 0.05-0.10 per cent.
In the previous instance it was being said that banks are increasing or changing MCLR to better put across rates for customers in line with interest rate prevailing in the economy.
The rise will push the costs of loans higher by some amount.
The loans financed for tenure of six months will now cost 8.3 per cent. The other loans take for a time horizon of one, three and five years will be charged at the rate of 8.40 per cent, 8.55 per cent and 8.7 per cent, respectively.
It is to be noted that there is no change in overnight lending rates for one and three month tenures.