Those who have either taken a home loan or are planning to take one from Punjab National Bank (PNB) have a reason to rejoice. The public sector bank has reduced the MCLR interest rates, which is a key deciding factor on home loan interest rates.
The state-run Punjab National Bank (PNB) has reduced the one-year marginal cost of funds-based lending rate (MCLR) by 0.05 percent to 7.30 percent, providing a big relief to its customers. The bank has cut down the six-month and three-month tenor MCLRs by 0.10 percent each to 7 percent and 6.80 percent, respectively. The new MCLR has come into effect from today (June 1, 2021). PNB has not changed overnight, one-month and three-year MCLRs.
Now, the customers will get loans on a lesser interest rate compared to earlier rates.
Home Loan Interest Rates
PNB has reduced 1-year Marginal Cost of Funds Based Lending Rate (MCLR) by 0.05 per cent. The new MCLR is 7.30 per cent. The revised MCLR rates came into effective from June 1, 2021, PNB
had said in a regulatory filing. Apart from one-year, PNB has reduced six-month and three-month tenor MCLR by 0.10 per cent. Meanwhile, the bank has kept one-month, overnight, and three-
year MCLRs at same level.
The six-month and three-month tenor MCLRs were cut by 0.10 per cent each to 7 per cent and 6.80 per cent, respectively. The overnight, one-month and three-year MCLRs have been kept unchanged.
Marginal Cost of Funds Based Lending Rate (MCLR) with effect from 01.06.2021 is as under:-
| MCLR TENOR | Existing | Revised w.e.f. 01.06.2021 |
|---|---|---|
| Overnight | 6.65% | 6.65% |
| One month | 6.70% | 6.70% |
| Three month | 6.90% | 6.80% |
| Six month | 7.10% | 7.00% |
| One year | 7.35% | 7.30% |
| Three years | 7.60% | 7.60% |
There will be no Change in Base rate (presently 8.65%) and RLLR (presently 6.80%), Punjab National Bank said.
PNB overnight MCLR TENOR remains at 6.65 per cent per annum. One-month MCLR TENOR has been kept at 6.70 per cent per annum. Three-month MCLR TENOR has been reduced to 6.80 per cent. The six-month MCLR TENOR has been slashed to 7.00 per cent. One MCLR TENOR has been reduced at 7.30 per cent. Three-year MCLR TENOR has been kept at 7.60 per cent.
The minimum rate of interest at which banks give you the facility of interest is called the base rate, which means that banks cannot give loans to anyone below the base rate. This base rate is known as MCLR. It is determined by using marginal cost, periodic premium, operating expenses, and the cost of maintaining the cash reserves ratio.
