ICICI Bank and Bank of India have revised their marginal cost-based lending rates (MCLR) on loans of various maturities. According to the banks’ websites, the increased interest rates will come into effect from November 1, 2023.
The lending rates for the majority of consumer loans are linked to a one-year tenure.
Quick, easy personal loans may become difficult now as RBI tells banks, NBFCs to be more careful
Here is a look at the latest MCLRs of ICICI Bank, and Bank of India.
ICICI Bank lending rates
The bank has hiked MCLR by 5 basis points across all tenures. According to the ICICI Bank website, the overnight, one-month MCLR rate is 8.50%. The three-month, six six-month MCLRs at ICICI Bank stand at 8.55% and 8.90%, respectively. The one-year MCLR is at 9%.
| MCLR effective November 1, 2023 | |
| Tenures | I-MCLR |
| Overnight | 8.50% |
| One Months | 8.50% |
| Three Months | 8.55% |
| Six Months | 8.90% |
| One Year | 9.00% |
Bank of India lending rates
The bank has hiked loan rates by up to 5 basis points on select tenures. According to the Bank of India website, the overnight is at 7.95%, one-month MCLR rate stands at 8.15%. The three-month, six-month MCLRs at Bank of India hiked to 8.35% and 8.55%, respectively. The one-year MCLR is now 8.75%. The three-year MCLR stands at 8.95%.
| Sl.No | Tenor wise MCLR | Rate effective from 01.11.2023 |
| 1 | Overnight MCLR | 7.95% |
| 2 | 1 Month MCLR | 8.20% |
| 3 | 3 Month MCLR | 8.35% |
| 4 | 6 Month MCLR | 8.55% |
| 5 | 1 Year MCLR | 8.75% |
| 6 | 3 Year MCLR | 8.95% |
What is the Marginal Cost of a Fund-Based Lending Rate (MCLR)?
According to the Kotak Mahindra Bank, “MCLR means the rate below which a bank cannot charge its customers. It is set by the bank adhering to the guidelines set by the RBI for it. The MCLR or MCLR full form in banking is suggestive of its function. It is the lowest rate at which Banks can lend funds. MCLR rate means a reference rate for banks to decide the interest rate they can charge on loans.”
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