ICICI Bank Revises MCLR Rates: Check the New Lending Rates

ICICI Bank has revised its marginal cost-based lending rates (MCLR), which are now in force until June 1, 2023. The MCLR is used to calculate the interest rate on a range of loans, including home loans. The MCLR is the benchmark lending rate used by domestic banks to set interest rates on a wide range of loans, including mortgages, personal loans, and business loans. The MCLR is determined by each bank based on its marginal cost of funds, which includes borrowing costs, operational expenses, and the planned profit margin.

In April 2016, the Reserve Bank of India (RBI) introduced the MCLR, a transparent approach to establishing lending rates, to replace the base rate structure. It is determined by factors such as the repo rate, the bank's operational costs, and the tenure premium.

The MCLR is revised once a month, taking into account the repo rate and other borrowing rates. ICICI Bank's overnight and one-month MCLR has been revised to 8.35%. The bank set the MCLR at 8.4 percent for the three-month period. The MCLR is 8.75% for six months and 8.85% for a year.

MCLR Effective From	June 1, 2023
Tenures	I-MCLR
Overnight	8.35%
One Month	8.35%
Three Month	8.40%
Six Month	8.75%

According to the ICICI Bank website, the "RBI Policy Repo Rate effective February 8, 2023 is 6.50%." "ICICI Bank External Benchmark Lending Rate" (I-EBLR) is a mark-up on the RBI Policy Repo Rate. I-EBLR is 9.25% p.a.p.m. as of September 30, 2022."