Punjab National Bank and Bank of India have cut their marginal cost of funds-based lending rates for September, giving respite to the borrowers whose loans are linked to the MCLR system.
Marginal Cost of funds-based lending rate is the minimum rate set by banks to compute interest on loans, including home, personal, and business loans.
PNB MCLR rates
PNB’s overnight MCLR rates have been cut from 8.15 percent to 8 percent. One-month MCLR was cut from 8.30 to 8.25 percent. Three-month MCLR was cut from 8.50 percent to 8.45 percent.
Six-month MCLR was cut from 8.70 percent to 8.65 percent. One and three-year MCLR were cut by 5 basis points each to 8.80 percent and 9.10 percent.
Bank of India’s lending rates
Bank of India also revised its MCLR across tenures. Now the overnight MCLR is 7.95 percent. One-month MCLR is 8.30 percent (10 bps lower), three-month MCLR is 8.45 percent (10 basis points lower), and six-month MCLR is 8.70 percent (10 basis points lower).
One-year MCLR was cut by 5 basis points to 8.85 percent, and 3-year MCLR was reduced by 15 basis points to 9 percent.
Will it impact personal loans?
It is important to note that the lending rates of those loans change, which are linked to the marginal cost of lending rates (MCLR). These could be home loans, personal loans, or business loans.
However, personal loans are typically disbursed at fixed rates of interest, so they do not undergo a change based on monthly revisions in MCLR during the loan tenure.
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