If you are a customer of ICICI Bank, then this is useful news for you. The bank has revised its Marginal Cost Based Lending Rate ie MCLR. The bank's new MCLR rates have come into effect from June 1, 2023.
According to the official website of ICICI Bank, the bank's MCLR rate for overnight tenure is 8.35 percent. For one month, the MCLR rate has been reduced from 8.50 per cent to 8.35 per cent and it has reduced the 3-month MCLR by 15 basis points from 8.55 per cent to 8.40 per cent. The bank has increased the MCLR by 5 bps to 8.75 per cent and 8.85 per cent for tenors of 6 months and one year, respectively.
Your EMI will increase
The EMI on term loan is expected to increase with the increase in MCLR. Most consumer loans are based on a one-year marginal cost-based lending rate. In such a situation, personal loans, auto and home loans can become expensive due to an increase in MCLR.
What is MCLR?
Significantly, MCLR is a method developed by the Reserve Bank of India, based on which banks determine the interest rate for loans. Before that, all the banks used to fix the interest rate for the customers based on base rate only.
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