PNB increases MCLR by 0.05 from September 1, making consumer loans costlier; Check new rates

New Delhi: Punjab National Bank has increased the marginal cost of funds-based lending rate (MCLR) by 0.05 % across tenors from September 1. This will eventually make most of the consumer loans costlier.

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The benchmark one-year tenor MCLR will be at 7.70 % from 7.65 %, as PNB said in a regulatory filing on Wednesday. It is to be noted that one-year tenor MCLR has been used to price most customer loans such as car, auto and personal loans.

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Now MCLR for three-years is at 8 %, which hiked up by 0.05%.

While MCLR for overnight tenor will around 7.05% from 7 % before. Among others, the rate of one-month, three-month and six-month tenor will be in the range of 7.10-7.40 per cent.

The bank has increased earlier the repo rate-linked lending rate to 7.90 % from7.40 %, up by 0.50 %. The step has been taken after RBI had hiked repo rate by 0.50 % to 5.40 %, which was third consecutive since May.

(With inputs from PTI)