Similar to other banks like ICICI Bank, Bank of India who did not change their lending rates in May 2023, Punjab National Bank did not change its marginal cost of lending rates.
Punjab National Bank has not changed the MCLR for the month of May. According to the PNB website, PNB’s overnight benchmark marginal cost of lending is at 8 percent, the rates for one month, three months, and six months at 8.10 percent, 8.20%, and 8.40 percent, respectively. The one-year MCLR stands at 8.50 percent, while the three-year MCLR is 8.80 percent.
| MCLR W.E.F. 01-05-2023 | ||
| MCLR TENOR | Existing W.E.F. 01.04.2023 | Revised W.E.F. 01.05.2023 |
| Overnight | 8.00% | 8.00% |
| One month | 8.10% | 8.10% |
| Three month | 8.20% | 8.20% |
| Six month | 8.40% | 8.40% |
| One year | 8.50% | 8.50% |
| Three years | 8.80% | 8.80% |
Source: Bank websiteAlso read: Hike in MCLR home loan interest rates has been lesser than EBLR loans; How long should borrowers stick to MCLR regime?
As per the PNB website, “Interest Rate On Advances Linked To MCLR (Presently 8.50%) And RLLR (Presently 9.00%) + BSP (Presently 0.25%)”
PNB RLLR
PNB RLLR is 9.25% (RLLR 9.00% + BSP 0.25%) effective from February 9, 2023.
PNB EBLR
According to the PNB website, PNB Repo Linked Lending Rate –ELITE* (PNB RLLR ELITE) are mentioned below.
PNB RLLR-ELITE
| Tenor Premium | |
| ≥1yr & 3yr | 0 |
| ≥3yr & 5yr | 0.6 |
| ≥5yr & 10y | 1 |
| ≥10yr & ≤15yr | 1.5 |
PNB Base Rate
The base rate of PNB is 9.50% effective from April 1, 2023.
MCLR rates will take more time to peak
Home loan borrowers under the MCLR regime appear to be better off keeping to the regime since they will be paying reduced EMIs for a longer period of time as the rising interest rate regime is anticipated to continue for some time. Their loan rates will gradually increase to levels that are comparable to the increased repo rate. They can prepare to transition to EBLR, which is quicker at passing on the advantage of interest rate reductions, once the interest rate cycle peaks or rates begin to decline.
New borrowers can get better rate
In contrast to existing borrowers, who have few options for escaping the grip of rising interest rates, new borrowers will generally do better since they can obtain loans at lower rates. According to data from the RBI, the WALR on new rupee loans made by SCBs climbed by 2 basis points (bps), from 8.86% in November 2022 to 8.88% in December 2022. This rate is significantly lower than the double-digit rate for current borrowers.
Source: economictimes.indiatimes.com