Home / Industry / Banking /  PNB, BOI hike lending rates; EMIs to go up

State-owned Punjab National Bank (PNB) and Bank of India(BOI) on Monday announced raised the marginal cost of funds-based lending rates (MCLRs).

Punjab National Bank (PNB) hiked MCLR across tenors by 30 basis points. While Bank Of India raised the same by up to 15 basis points across tenors.

The MCLR with effect from November 1, 2022 shall be revised with the benchmark one-year tenor rate at 8.05 per cent as against the 7.75 per cent existing rate, PNB said in a regulatory filing.

All other tenor MCLRs, from overnight to three years, have been increased by 30 basis points each to 7.40 - 8.35 per cent.

Bank of India's one-year MCLR will be priced at 7.95 per cent from November 1, 2022 as against 7.80 per cent at present, the lender said in its regulatory filing.

The minimal lending rate or the internal benchmark below which a bank is prohibited from lending is known as the Marginal Cost of Funds based Lending Rate (MCLR).

The revision will make loans linked to MCLR benchmark costlier. The one-year rate is used to fix most consumer loans such as auto, personal and home loans.

All the other tenor MCLRs have been raised by 10 basis points each to 7.05-8.10 per cent. 

Many banks led by State Bank of India (SBI) have already adjusted their lending rates after the Reserve Bank raised the benchmark interest rate.

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