Punjab National Bank has increased MCLR by 0.05 percent or 5 basis points. After this, consumer loans of all tenures have become expensive.
On the first of August, lakhs of people across the country have got a big shock. Because, consumer loans of all tenures of the public sector Punjab National Bank have become expensive. Actually, this government bank has increased the MCLR by 0.05 percent or 5 basis points.
In a notice given to the stock market, PNB said that the standard MCLR for a period of one year will now be 8.90 percent, which was earlier 8.85 percent. It is used in the evaluation of most consumer loans like motor vehicle and personal. The 3-year MCLR has increased by five basis points to 9.20 percent.
Among others, the interest rate for one month, three months and six months tenure will be in the range of 8.35-8.55 percent. For one day tenure, MCLR will be 8.30 percent instead of 8.25 percent. The new rates have become effective from August 1, 2024.
What is MCLR?
Marginal Cost of Funds Based Landing Rate (MCLR) is an internal benchmark rate for banks by the Reserve Bank of India, implemented from 1 April 2016. MCLR determines how much interest banks can charge on loans.
Bank of India also announced on Wednesday to increase the MCLR by 0.05 percent to 8.95 percent for a period of one year. However, the rates remain unchanged for the remaining period. Let us tell you that since May 2022, RBI has continuously increased the interest rates to control inflation.
