Mumbai: Largest private sector bank in the country, ICICI Bank has raised its Marginal Cost of Funds Based Lending Rate (MCLR). The MCLR is hiked by y 5 basis points. After the hike the equated monthly instalments (EMIs) of all retail loans including car loans, education loans, personal loans and home loans will go up.
The Marginal Cost of Funds Based Lending Rate (MCLR) serves as a fixed lending rate that banks use to determine the interest rates for car loans, home loans, education loans, and more MCLR is the minimum rate of interest banks are allowed to give out loans to its customers. It is a benchmark interest rate and it dictates the lower limit of the interest rate for a loan. Any changes in MCLR rates by the bank directly affect the interest rates and Equated Monthly Installments (EMIs) for customers.
Also Read: EMIs to become costlier as public sector bank hikes lending rates
The bank hiked overnight MCLR from 8.40% to 8.45%. The one-month MCLR rose to 8.50%, three months MCLR to 8.85%, and one year MCLR to 8.95%.
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