ICICI Bank: Big news has come out for the customers of ICICI Bank. Actually the bank has changed its MCLR as soon as June 2023 starts. Banks give loans to their customers at different interest rates, in this case MCLR is the rate that the banks themselves fix. After this decision of ICICI Bank, many loans have become cheaper. Now customers can get many loans including home loans cheaply.
ICICI Bank has reduced the MCLR from 8.50 per cent to 8.35 per cent for one month’s time. At the same time, the MCLR has been reduced by 15 basis points from 8.55 per cent to 8.40 per cent for a period of three months. The bank has increased the MCLR by 5 bps to 8.75 per cent and 8.85 per cent for six months and one year tenure respectively. All these rates have been implemented from June 1 itself.
Duration MCLR
- Overnight 8.35 percent
- one month 8.35 percent
- three months 8.40 percent
- six months 8.75 percent
- one year 8.85 percent
Many loans including home loan will be cheaper
According to the website of ICICI Bank, the RBI policy repo rate with effect from February 8, 2023 is 6.50 percent. At the same time, ICICI Bank External Benchmark Lending Rate (EBLR) is 9.25 percent. After this decision of the bank, now many loans including home loans will become cheaper. It would be better for customers taking home loans under MCLR to continue with this arrangement as it would enable them to pay lower monthly EMIs for a longer tenure.
Some decisions taken by RBI
The RBI replaced the base rate system for determining interest rates with the MCLR system on April 1, 2016. At the same time, RBI introduced external benchmarking system to replace MCLR for home loans, business loans, working capital loans etc. with effect from 01 October 2019. This new lending rate system is applicable only for loans with floating interest rates. This is not applicable for Fixed Interest Loan.
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