Big Blow To Loan Borrowers! EMIs To Go Up? ICICI, Bank Of India Hikes Their Lending Rates; Check

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New Delhi: Private sector lender ICICI Bank and state-owned Bank of India have decided to increase their marginal cost of funds-based lending rates (MCLR) across different periods, effective from November 1, 2023. This move comes following the recent statement by RBI Governor Shaktikant Das, where he emphasized the incomplete transmission of the current monetary policy cycle and the potential for a rate hike.

ICICI Bank: MCLR Rate

Following the latest MCLR hike, ICICI Bank's overnight and one-month MCLR now stands at 8.50 percent and 8.55 percent, respectively. The rates for three months and six months are 8.90 percent. The one-year MCLR has been set at 9 percent. ()

Bank Of India's MCLR Rate

Bank of India has also revised its MCLR rates. The overnight MCLR and one-month MCLR now stand at 7.95 percent and 8.20 percent, respectively. ()

Meanwhile, the three-month MCLR and six-month MCLR have been set at 8.35 percent and 8.55 percent. The one-year MCLR has been adjusted to 8.75 percent, with the three-year MCLR at 8.95 percent.

What Is The MCLR Rate?

Implemented by the RBI on April 1, 2016, MCLR serves as the minimum lending rate below which a bank is not allowed to lend.

The consistent repo rate hikes by the RBI since May 2022 have led to a continuous increase in interest rates on both loans and deposits by banks.