Loan Interest Rates- Top Banks Increased Lending rates in January 2023

Borrowers' equivalent monthly instalment (EMI) has increased as a result of several banks raising their marginal cost of funds-based lending rate (MCLR) in January 2023, impacting their customer Equated Monthly Installments (EMIs) as many bank loan customers are still linked to MCLR while new loan borrowers are moved to External Benchmark Lending Rate (EBLR). Here are the most recent MCLR rates from various banks.

State Bank of India

SBI raised its 1-year marginal cost of funds-based lending rate (MCLR) by up to 10 basis points (BPS) to 8.4%. The MCLR was raised by the bank in December 2022. It raised the six-month and one-year MCLRs from 8.05% to 8.30% at the time. The two-year MCLR increased from 8.25% to 8.50%, while the three-year MCLR increased from 8.35% to 8.60%.

Canara Bank-

Canara Bank, one of the leading public sector lenders, raised its lending rates by 15 to 25 basis points across all tenures. Canara Bank has increased its MCFLR (Marginal Cost of Funds Based Lending Rate) (MCLR). The new interest rates will go into effect on January 7, 2023, according to the BSE filing. Canara Bank increased its 1-month MCLR rate by 20 basis points overnight, raising it from 7.30% to 7.50%. The three-month MCLR was raised from 8.05% to 8.20%, while the six-month MCLR was raised from 8.05% to 8.20%. The bank increased the one-year MCLR from 8.15% to 8.35%.

Indian Overseas Bank-

The Marginal Cost of Fund Based Lending Rate (MCLR) of Indian Overseas Bank (IOB) has been raised by 5 basis points. For all tenors, the IOB has raised the marginal cost of funding-based lending rate (MCLR).

According to the Indian Overseas Bank website, the overnight MCLR rate has increased from 7.65% to 7.70%, and the one-month MCLR rate has increased from 7.7% to 7.75%. The three-month MCLR has been raised to 8.05% from 8.00%, the six-month MCLR has been raised to 8.2% from 8.15%, the one-year MCLR has been raised to 8.3% from 8.25%, the two-year MCLR has been raised to 8.4% from 8.35%, and the three-year MCLR has been raised to 8.45% from 8.4%.

HDFC Bank-

The marginal cost of funds-based lending rate at HDFC Bank has been raised (MCLR). According to the HDFC Bank website, the overnight MCLR is now 8.50%, up from 8.30%, with effect from January 7, 2023. (bps). The one-month MCLR is now 8.55%, up from 8.30%, a 25 basis point increase. The three-month and six-month MCLRs will be 8.60 percent, up from 8.35 percent and 8.70 percent, respectively, from 8.45%. The one-year MCLR, which is linked to many consumer loans, will now be 8.85% instead of 8.60%, the two-year MCLR will be 8.95% instead of 8.70%, and the three-year MCLR will be 9.05% instead of 8.80%.

Punjab National Bank-

Punjab National Bank (PNB) increased its lending rate based on the marginal cost of funds (MCLR). PNB's overnight benchmark marginal cost of lending rate has risen from 7.45 % to 7.80 %, with rates for one month, three months, and six months rising to 7.90 %, 8%, and 8.20 percent, respectively, according to the PNB website. The one-year MCLR, on the other hand, has increased by 20 basis points from 8.10 percent to 8.30 %, while the three-year MCLR has increased from 8.40 % to 8.60 percent.

Bank of India-

The Bank of India raised its marginal cost of funds-based lending rate (MCLR). The one-month MCLR is 7.75%, the three-month and six-month MCLRs are 7.80% and 8.05%, respectively, according to the Bank of India website. After the hike, the Bank of India's one-year MCLR has been raised to 8.30%, and the three-year MCLR has been raised to 8.50%.

ICICI Bank-

ICICI Bank has increased its marginal cost-based lending rate (MCLR) by up to 25 basis points across all tenures. The overnight, one-month MCLR rate has been raised to 8.40 % from 8.15%, according to the ICICI Bank website. ICICI Bank's three-month and six-month MCLRs have been raised to 8.45 % and 8.60%, respectively, one-year MCLR is hiked to 8.65 percent.