SBI, PNB, HDFC, ICICI, Kotak Mahindra hike MCLR: EMIs may go up; check latest Home loan rates

By: | Published: June 3, 2018 3:58 PM

Ahead of the Reserve Bank of India's key policy rate decision, top banks like State Bank of India, Punjab National Bank, HDFC and ICICI recently raised their MCLR (Marginal Cost-based Lending Rates) by 10 basis points (bps).

SBI, PNB, HDFC, ICICI, Kotak Mahindra hike MCLR.

Ahead of the Reserve Bank of India’s key policy rate decision, top banks like State Bank of India, Punjab National Bank, HDFC and ICICI recently raised their MCLR (Marginal Cost-based Lending Rates) by 10 basis points (bps). One basis point is equal to one-hundredth of a percentage point (0.01%). After the revision of MCLR by Punjab National Bank, country’s largest lender State Bank of India (SBI) hiked its MCLR by 10 bps across all plans for up to three years period. Three other private sector banks HDFC, ICICI and Kotak Mahindra also hiked their MCLR by a similar margin.

MCLR is the abbreviated form of Marginal Cost based Lending Rates. It refers to the minimum interest rate below which a bank can’t lend to anyone except in some cases allowed by the Reserve Bank of India (RBI). The MCLR is an internal benchmark or reference rate for the bank.

With the revision in MCLR, home loans, personal loans and car loans are likely to go up, adding to the EMI (Equated Monthly Installments) burden on borrowers.

Reserve Bank of India (RBI) is scheduled to announce its key policy repo rate decision on June 6. Repo rate is the rate at which the country’s central bank lends money to commercial banks in the event of any shortfall of funds. It is used by monetary authorities to control inflation.

Here are the revised MCLR, Home loans of SBI, PNB, HDFC, ICICI and Kotak Mahindra

SBI

SBI is providing home loans up to Rs 30 lakh at an interest of 8.35 to 8.45 percent to women while for others it is 8.40 to 8.50 percent. For a loan of above Rs 30 lakh to Rs 75 lakh, the bank provides loan at an interest 8.50 to 8.60 percent to women while for others it is 8.55 to 8.65 percent. For a loan of above Rs 75 lakh, the bank provides an interest of 8.60 to 8.70 percent for women while for others at an interest of 8.65 to 8.75 percent.

The country’s largest lender revised MCLR on June 1, 2018. The overnight and one month period MCLR (Marginal Cost based Lending Rates) was revised to 7.90 percent (from 7.80 per cent); three month period to 7.95 per cent (from 7.85 per cent); six month period to 8.10 percent (from 8.00 percent). While, for a duration of one year and two year, the MCLR was revised to 8.25 per cent (from 8.15 per cent) and 8.35 per cent (from 8.25 per cent) respectively. For three years, the MCLR was hiked to 8.45 percent (from 8.35 percent).

Punjab National Bank

PNB provides home loans up to Rs 25 lakh at an interest 8.50 percent to women while for others it is 9.70 percent. For a loan of above Rs 25 lakhs to Rs 50 lakhs, the bank provides loan at an interest 8.50 percent to women while for others it is 9.70 percent. For a loan of above Rs 50 lakh to Rs 75 lakh, the bank provides an interest of 8.50 percent for women while for others at an interest of 9.70 percent. For a loan of above Rs 75 lakh, the bank provides an interest of 8.55 percent to women while for others at an interest of 9.70 percent.

The country’s second-largest lender revised MCLR on June 1, 2018. The overnight, one month and three month period MCLR (Marginal Cost based Lending Rates) remain unchanged i.e 7.80 percent, 7.95 percent and 8.10 percent respectively. For six month period, PNB’s MCLR is 8.30 percent (from 8.25 percent). While, for a duration of one year and three years, the MCLR revised rates are 8.40 percent (from 8.30 percent) and 8.55 percent (from 8.45 percent) respectively. For five years, the MCLR was hiked to 8.70 percent (from 8.60 percent).

PNB also revised its base rate to 9.25 percent (9.15 percent).

HDFC

HDFC or Housing Development Finance Corporation hiked its RPLR (Retail Prime Lending Rate), on which its ARHL(Adjustable Rate Home Loans) are benchmarked, by 10bps from June 2, 2018. After the revision, the new prime lending rate for HDFC is 16.45 percent (from 16.35 percent).

HDFC provides loans up to Rs 30 lakh at an interest 8.40 to 8.90 percent for women while others can get it at 8.45 to 8.95 percent. The bank provides loans of a sum higher than Rs 30 lakh at an interest of 8.50 to 9.00 for women while others can get it at 8.55 to 9.05 percent.

Kotak Mahindra

Kotak Mahindra Bank provides home loans up of 8.50 per cent for salaried persons while for self-employed, the bank provides an interest of 8.60 percent.

Uday Kotak- led Kotak Mahindra bank also revised its MCLR from June 1, 2018, by 10-20 bps. The overnight and one month period MCLR (Marginal Cost based Lending Rates) was revised to 7.95 per cent and 8.15 per cent. Six month period is 8.60 per cent. While, for a duration of one year and two years, the MCLR revised rates are 8.90 percent. For a duration of three years, the MCLR is 8.95 per cent.

ICICI

ICICI bank provides home loans in various categories:

For loan up to Rs 30 lakh- The bank provides an interest of 8.45 percent for salaried women borrower while for others it provides an interest of 8.50 percent. For self employed borrower, it provides an interest of 8.60 percent to women while for others it is 8.65 percent.

For fixed rate of 24/36 months- The bank provides an interest of 8.45 percent for salaried women borrower while for others it provides an interest of 8.50 percent. For self employed borrower, it provides an interest of 8.60 percent to women while for others it is 8.65 percent.

In category of women borrower:

The bank provides an interest of 8.75 percent for loan up of Rs 30 lakhs to Rs 75 lakhs. For Rs 75 lakhs to Rs 5 crore, the interest rate is 8.80 percent while a loan of above Rs 5 crore, the interest rate is 8.90 percent.

For the fixed rate of 5 years and 10 years, the bank provides an interest of 8.80 percent for loan up to Rs 30 lakhs. For Rs 30 lakhs to Rs 5 crore, the bank provides an interest of 8.90 percent while for above Rs 5 crore, the interest rate is 9.00 percent.

For full tenor fixed interest rate, the bank provides an interest of 9.80 percent for loan up to Rs 30 lakhs. For Rs 30 lakhs to Rs 5 crore, the bank provides an interest of 9.90 percent while for above Rs 5 crore, the interest rate is 10.15 percent.

For Salaried borrowers:

The bank provides an interest of 8.80 per cent for loan up of Rs 30 lakhs to Rs 75 lakhs. For Rs 75 lakhs to Rs 5 crore, the interest rate is 8.85 percent while for a sum of above Rs 5 crore, the interest rate is 8.95 per cent.

For the fixed rate of 2 years and 3 years, the bank provides an interest of 8.80 percent for loan of Rs 30 lakhs to Rs 75 lakhs. For Rs 75 lakhs to Rs 5 crore, the interest rate is 8.85 per cent while a loan of above Rs 5 crore, the interest rate is 8.95 percent.

For the fixed rate of 5 years and 10 years, the bank provides an interest of 8.85 percent for loan up to Rs 30 lakhs. For a loan of above Rs 30 lakhs, the interest ranges from 8.95 to 9.05 percent.

For full tenor fixed interest rate, the bank provides an interest of 9.85 percent for loan up to Rs 30 lakhs. For above Rs 30 lakhs, the bank provides an interest of 9.95 to 10.20 percent.

For Self Employed borrower:

The bank provides an interest of 8.80 percent for loan up of Rs 30 lakhs to Rs 75 lakhs. For above Rs 75 lakhs, the interest rate is 8.85 to 8.95 percent.

For the fixed rate of 2 years and 3 years, the bank provides an interest of 8.80 percent for the loan of Rs 30 lakhs to Rs 75 lakhs. For above Rs 75 lakhs, the interest rate is 8.85 to 8.95 percent

For the fixed rate of 5 years and 10 years, the bank provides an interest of 8.85 percent for loan up to Rs 30 lakhs. For a loan of above Rs 30 lakhs, the interest ranges from 8.95 to 9.05 percent.

For full tenor fixed interest rate, the bank provides an interest of 9.85 percent for loan up to Rs 30 lakhs. For above Rs 30 lakhs, the bank provides an interest of 9.95 to 10.20 percent.

The ICICI bank has revised its overnight, one month and three month period MCLR (Marginal Cost based Lending Rates) at 8.05 percent, 8.10 percent respectively. While, for a duration of Six month period is 8.35 per cent and one-year period is 8.40 per cent.

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