Punjab National Bank has raised its marginal cost of funds-based lending rate by 15 basis points across all tenures, a move that will lead to an increase in equated monthly instalments for borrowers.
The new rates are effective from June 1.
The revision follows an off-cycle rate hike by the Reserve Bank of India in May. The central bank hiked the repo rate -- at which it lends short-term money to banks -- by 0.40 percentage point to 4.40%. With the revision, one-year MCLR has increased to 7.40% from 7.25% earlier.
Most of the loans are linked to the one-year MCLR rate.
The overnight, one-month and three-month MCLR rose by 15 basis points to 6.75%, 6.80% and 6.90%, respectively, whereas the six-month MCLR increased to 7.10%. Three-year MCLR increased by 0.15% to 7.70%. With the increase, EMIs will go up for those borrowers who have availed loans on MCLR.
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