State-owned Punjab National Bank on Thursday raised its marginal cost-based lending rate (MCLR) by 0.05 per cent or 5 basis points across all tenors, making most consumer loans costlier.

Consumer loans have become expensive

The benchmark one-year tenor MCLR, used to price most consumer loans such as auto and personal, will be 8.90 per cent against the earlier rate of 8.85 per cent, PNB said in a regulatory filing.

How much was the increase?

The three-year MCLR is 9.20 percent with an increase of 5 basis points. The rate for one month, three month and six month periods will be in the range of 8.35-8.55 percent. The MCLR on the overnight period will be 8.30 percent as against 8.25 percent. The new rates will be effective from August 1, 2024.

Bank of India also increased

On Wednesday, another public sector lender Bank of India also announced a hike in MCLR by 5 basis points to 8.95 per cent for a one-year tenure. However, rates for the remaining tenure remained unchanged.