Punjab National Bank
According to the PNB Bank website, the overnight is increased to 7.90 percent, one-month MCLR rate has been increased to 8 percent from 7.90 percent. The three-months, six months MCLRs at ICICI Bank have been increased to 8.10 percent, and 8.30 percent, respectively. The one-year MCLR is hiked to 8.40 percent and 8.70 percent for three years.
| MCLR TENOR | Existing W.E.F. 01.01.2023 | Revised W.E.F. 01.02.2023 |
| Overnight | 7.80% | 7.90% |
| One month | 7.90% | 8.00% |
| Three month | 8.00% | 8.10% |
| Six month | 8.20% | 8.30% |
| One year | 8.30% | 8.40% |
| Three years | 8.60% | 8.70% |
ICICI Bank
According to the ICICI Bank website, the overnight, one-month MCLR rate has been increased to 8.40 percent from 8.15 percent. The three-months, six months MCLRs at ICICI Bank have been increased to 8.45 percent, and 8.60 percent, respectively. The one-year MCLR is hiked to 8.65 percent.
| MCLR effective February 1, 2023 | |
| Tenures | I-MCLR |
| Overnight | 8.40% |
| One Months | 8.40% |
| Three Months | 8.45% |
| Six Months | 8.60% |
| One Year | 8.65% |
Your EMI payment will increase along with the increase in the interest rate on your home loan (both EBLR and MCLR). The benchmark to which your mortgage loan is connected will determine when the increase will affect you.According to the ICICI Bank website, “RBI Policy Repo Rate effective December 7, 2022 is 6.25%.
“ICICI Bank External Benchmark Lending Rate” (I-EBLR) is referenced to RBI Policy Repo Rate with a mark-up over Repo Rate. I-EBLR is 9.25% p.a.p.m. effective September 30, 2022.”
Can a borrower switch lending regimes?
A borrower can change her house loan from being connected to the MCLR to being linked to an external benchmark. The borrower will need to tell the bank and pay the associated administrative fees.
According to the ICICI Bank FAQ page, “all existing customers have an option to switch from the existing system of FRR/PLR/I-Base/MCLR (FRR/PLR/I-Base/MCLR +/- spread) to the new system of Repo linked rate (Repo + spread) at prevailing rate applicable for new loan with the same category of customer.”
Note that for all new floating rate Home/Mortgage Loans sanctioned from Oct 01, 2019, the Bank will only offer loans linked to Repo Rate. However, the existing loans will continue on the respective PLR/FRR/I-Base/MCLR till its repayment.