PNB Raises MCLR by 5 Basis Points, Consumer Loans to Become Costlier

Punjab National Bank (PNB) has increased its marginal cost of funds-based lending rate (MCLR) by 0.05%, making most consumer loans more expensive. The one-year MCLR now stands at 8.90%, while three-year MCLR is 9.20%. These new rates will be effective from August 1, 2024.

Punjab National Bank (PNB), a state-owned lender, has announced a 0.05% increase in its marginal cost of funds-based lending rate (MCLR), affecting multiple loan tenors and making consumer loans more expensive.

The one-year MCLR, which is a benchmark for pricing most consumer loans such as auto and personal loans, has been raised to 8.90% from the previous 8.85%, according to a regulatory filing by PNB.

The three-year MCLR has also been elevated to 9.20%. Other rates for tenors ranging from one month to six months will now fall between 8.35% and 8.55%. The overnight MCLR is set at 8.30%, up from 8.25%. The new rates will be in effect from August 1, 2024. On Wednesday, Bank of India also raised its one-year MCLR by 5 basis points to 8.95%, while keeping other tenors unchanged.

(With inputs from agencies.)