On Friday, May 31, Punjab National Bank (PNB) announced an increase in its Marginal Cost of Funds Based Lending Rates (MCLR) by up to 5 basis points for various loan periods. The revised rates are effective from June 1, 2024.
Unchanged MCLR Rates
PNB has kept the MCLR rates unchanged for certain periods. The overnight MCLR remains at 8.25%, and the 1-month MCLR is steady at 8.30%. These rates have not been adjusted from their previous levels.
Revised MCLR Rates
For periods longer than one month, there have been slight increases in the MCLR:
3-Month MCLR: The rate has been raised from 8.45% to 8.50%.
6-Month MCLR: The rate has been increased from 8.65% to 8.70%.
1-Year MCLR: The rate has gone up from 8.80% to 8.85%.
3-Year MCLR: The rate has been adjusted from 9.10% to 9.15%.
These changes mean that loans taken for these periods from Punjab National Bank will now incur higher interest costs.
Impact on Borrowers
The increased MCLR rates will result in higher interest expenses for borrowers taking loans for 3 months to 3 years.
If you plan to take a loan from PNB for these periods, expect a slight rise in the cost compared to previous rates.
