ICICI Bank hikes MCLR on home and auto loans - check latest rates here

ICICI Bank MCLR 2023: ICICI Bank has increased its Marginal Cost of Funds based Lending Rate (MCLR) by up to 10 basis points across tenures, according to the bank's website. The new rates are effective from March 1. 

The latest hikes in the interest rates follows the Reserve Bank of India's (RBI) latest move to increase the repo rate by 25 bps to 6.50 per cent.

The revised MCLR rates of ICICI Bank now range in between 8.5 per cent and 8.75 per cent. 

Also Read: Income Tax: What are the 3 deductions under the new tax regime? 

ICICI Bank MCLR Hike: Rate slab 

According to ICICI Bank's official website, for the tenure of overnight and one-month, MCLR rate has increased from 8.4 per cent to 8.5 per cent. For the period of three-month, the MCLR has been hiked from 8.45 per cent to 8.55 per cent. 

ICICI Bank MCLR Hike: Who will be impacted 

MCLR is referred to the minimum interest rate below which financial institutions can't lend money, except in certain cases. This is applied to home loans, auto loans and personal loans. With increase in MCRL, the EMI (Equated Monthly Installments) on loans will get costlier. 

RBI’s Guidelines on MCLR:

-Fixed rate home loans will not be affected by MCLR.

-Deposit balances and other borrowings are considered while computation of marginal cost of funds.

-Banks must publish marginal cost of funds-based lending rates for different tenors.

-MCLR as on the sanction date of the floating rate home loan will stand the same till next reset date.

Likewise, MCLR for the tenure of six-months has been increased from 8.6 per cent to 8.7 per cent. For one-year tenure, MCLR now stands at 8.75 per cent.

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