It is the start of the new month and few banks have announced revisions in their marginal cost of funds-based lending rates or MCLR. Banks that have revised loan interest rates are ICICI Bank, Punjab National Bank, Bank of India and Bandhan Bank.
Here a look at the latest MCLR of these four banks.
Latest ICICI Bank lending rates
ICICI Bank has revised its marginal cost of funds-based lending rates. The overnight rate is 8.5%. The one-month rate is 8.5%. The three-month rate is 8.55%. The six-month rate is 8.9%. The one-year rate is 9%. The latest rates are given in the table below:
| Tenure | Interest Rate |
| Overnight | 8.50% |
| One Months | 8.50% |
| Three Months | 8.55% |
| Six Months | 8.90% |
| One Year | 9.00% |
Source: ICICI Bank website
Bandhan Bank latest lending rate
Bandhan Bank has revised both its external benchmark lending rate and marginal cost of funds-based lending rates. The external benchmark lending rate or RBI Repo Linked Lending Rate (RLLR) stood at 6.5% with effect from December 1, 2023. The marginal cost of funds-based lending rates for Bandhan Bank was revised with effect from November 30, 2023. It is 7.07% for overnight and one-month tenures. The MCLR for three months and 6 months tenure is now 8.57%. The one, two and three-year MCLRs for Bandhan Bank borrowers stands at 11.32%.
| Tenure | Interest Rate |
| Overnight | 7.07% |
| One Months | 7.07% |
| Three Months | 8.57% |
| Six Months | 8.57% |
| One Year | 11.32% |
| Two Year | 11.32% |
| Three Year | 11.32% |
Source: Bandhan Bank Website
Punjab National Bank (PNB) latest lending rates
State-run Punjab National Bank (PNB) has revised its marginal cost of funds-based lending rates with effect from December 1, 2023. The revised overnight MCLR now stands at 8.2%. For one-month tenure the rate is 8.25%. For a three-month tenure, PNB’s MCLR rate is 8.35%. PNB’s six-month MCLR is 8.55%. For a one-year tenure, PNB’s MCLR rate is 8.65%. For a three-year tenure the rate is 8.95%.
| Tenure | Interest Rate |
| Overnight | 8.20% |
| One Months | 8.25% |
| Three Months | 8.35% |
| Six Months | 8.55% |
| One Year | 8.65% |
| Three Year | 8.95% |
Source: Punjab National Bank (PNB) website
Bank of India latest lending rates
Bank of India has revised its MCLR rates with effect from December 1, 2023. The overnight rate is 7.95%. The one-month MCLR for Bank of India borrowers is 8.25%. The three-month MCLR is 8.4%. The six-month MCLR is 8.6%. The one-year MCLR is 8.8%. The three-year MCLR is 9%.
| Tenure | Interest Rate |
| Overnight | 7.95% |
| One Months | 8.25% |
| Three Months | 8.40% |
| Six Months | 8.60% |
| One Year | 8.80% |
| Three Year | 9.00% |
Source: Bank of India
What is the marginal cost of funds-based lending rates?
The MCLR is changed every month, taking into account the repo rate and other borrowing rates. Banks are mandated by the Reserve Bank of India (RBI) not to lend below the MCLR. Usually the tenure options are one month, three months, six months, one year, and three years. Most loans issued to borrowers are linked to the one-year rate.
However, banks are now required to link the interest rates charged on home loans to any of the selected external benchmarks under the new lending regime that the RBI introduced in October 2019.
