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PNB hikes MCLR by 5 bps from November 1, retail loans to be costlier

The benchmark one-year MCLR rate -- on which most of the retail loans are based--stands increased to 8.50 per cent

Press Trust of India  |  New Delhi 

Punjab National bank
Punjab National Bank | Photo: Shutterstoc

State-owned Tuesday said it has hiked the benchmark by 5 basis points across tenors from November 1 that will make retail loans costlier for customers.

The marginal cost of funds based (MCLR) has been revised with effect from November 1, 2018, the bank said in a regulatory filing.

The benchmark one-year rate -- on which most of the retail loans are based--stands increased to 8.50 per cent.

For other tenors, three-year loan will come at a rate of 8.7 per cent, for six-month, it will attract the interest of 8.45 per cent and for three months it would be at 8.25 per cent.

One-month and overnight tenor loans will be priced at 8.15 per cent each.

The mechanism was introduced into the banking system in April 2016 as an alternative to the base rate, below which cannot lend, for new borrowers.

is calculated on the marginal cost of borrowing and return on net worth for

First Published: Tue, October 30 2018. 19:25 IST
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