PNB Increases MCLR by 0.05 Percent
In August, PNB raised the repo-linked lending rate (RLLR) by 0.50 per cent to 7.90 per cent.
The Punjab National Bank (PNB) has increased the marginal cost of funds-based lending rate (MCLR) by 0.05 percent. Marginal cost of funds based lending rate refers to the minimum interest rate of bank below which the bank cannot lend, except in some cases allowed by the RBI. It is an internal benchmark/reference rate for a bank. The PNB stated in a regulatory filing that, the benchmark one-year tenor MCLR, which is used to price the ordinary personal loans of consumer and also car or auto loans, will be at 7.70% as opposed to the existing 7.65 per cent. In August, PNB raised the repo-linked lending rate (RLLR) by 0.50 per cent to 7.90 per cent. When banks link the interest rate on their loans to the repo rate, this is termed as the repo linked lending rate. RLLR is proportional to the repo rate which is the rate at which banks borrow from the RBI against government securities.