Banks including ICICI Bank increased MCLR, EMI burden will increase on customers

MCLR Hike by ICICI Bank and Bank Of India MCLR has been increased by ICICI Bank and Bank of India. MCLR is directly related to loan interest rates. In such a situation, if any change is made in it, then it has a direct impact on the borrowers. 

Aug 2, 2023 - 12:55
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Banks including ICICI Bank increased MCLR, EMI burden will increase on customers

Due to the increase in the repo rate since May last year, there has been an increase in the EMI of the people. Lending rates are being increased by some banks even after stopping the increase in interest rates by RBI.
The latest hike has come from ICICI Bank and Bank of India. The MCLR rates of loans have been increased by these banks. The new interest rates have come into effect from August 1.
The MCLR rate has been increased by 5 basis points from ICICI Bank. After this hike, the overnight and one-month MCLR is 8.40 percent, three months MCLRs 8.45 percent, six months 8.80 percent, and one-year MCLR 8.90 percent.
MCLR has been increased for some selected periods by the Bank of India. The one-year MCLR is 8.70 percent and the three-year MCLR is 8.90 percent. Whereas, overnight is 7.95 percent, one month 8.15 percent, three months 8.30 percent, six months 8.50 percent.
The full form of MCLR is Marginal Cost of Funds Based Lending Rates. This is the rate at which banks lend to customers. The change in this has a direct impact on the EMI of the customers.
Let us tell you, in May 2022, RBI started increasing the interest rates. Since then till now RBI has increased the repo by 2.5 percent. However, there has been no increase in interest rates in the last two monetary committee meetings.

Muskan Kumawat Journalist & Writer
Electronics Special
Electronics Special