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Loans Get Costlier As SBI, ICICI And PNB Raise MCLR
The three banks with the largest customer base in the country have revised their MCLR (Marginal Cost of Funds based Lending Rate), with effect from 1 October 2018.
MCLR is the rate at which banks lend money to its customers. This system implemented by the Reserve Bank of India (RBI) on 1 April 2016, that helps commercial banks set a minimal rate of interest for advances, taking in account additional cost to arrange additional amount for the prospective buyer.
The decision by SBI, ICICI Bank and PNB to increase their lending rates comes in the same week as that of the RBI's monetary policy committee meet; the results of which will come out on 5 October.
State Bank of India (SBI)
SBI has increased the MCLR for all tenures by 0.05 percent. The rates are effective from 1 October as per the bank's official website. The new revised rates are below:
| Tenure | Existing MCLR | Revised MCLR |
|---|---|---|
| Overnight | 8.10% | 8.15% |
| One month | 8.10% | 8.15% |
| Three months | 8.15% | 8.20% |
| Six months | 8.30% | 8.35% |
| One year | 8.45% | 8.50% |
| Two years | 8.55% | 8.60% |
| Three years | 8.65% | 8.70% |
(Source: www.sbi.co.in)
Punjab National Bank (PNB)
The MCLR rates of PNB were hiked for overnight (+0.02%), one month (+0.05%) and three-year (+0.05%) tenures. These will be effective from 1 October as per the bank's official website.
| Tenure | Existing MCLR | Revised MCLR |
|---|---|---|
| Overnight | 7.90% | 8.10% |
| One month | 8.05% | 8.10% |
| Three months | 8.20% | 8.20% |
| Six months | 8.40% | 8.40% |
| One year | 8.45% | 8.45% |
| Three years | 8.60% | 8.65% |
ICICI Bank
One of the biggest private lenders in the country has increased its MCLR rates by 0.10 percent for its one-year. Here are its new lending rates effective from 1 October, as per its official website:
| Tenures | I-MCLR |
|---|---|
| Overnight | 8.40% |
| One month | 8.40% |
| Three months | 8.45% |
| Six months | 8.60% |
| One year | 8.65% |
