PNB Bank MCLR & Base Rate
PNB or Punjab National Bank, simply known as PNB is one of the leading banks in India that offers exciting financial services and products.
Punjab National Bank has revised the MCLR (marginal cost of funds-based lending rate), just like the other top banks in the country. This step has been taken as per the directive of the Reserve Bank of India in order to make home loans more affordable for the customers.
Current PNB MCLR Rates
Tenure | PNB MCLR Rates |
Overnight | 8.15% |
1 month | 8.30% |
3 months | 8.50% |
6 months | 8.70% |
1 year | 8.85% |
2 Years | N/A |
3 years | 9.15% |
MCLR Rate By Top Banks
How to switch from Punjab National Bank Base Rate to Punjab National Bank MCLR Rate?
In order to switch from Punjab National Bank Base Rate to Punjab National Bank MCLR Rate, two steps must be followed:
- A written application must be sent to Punjab National Bank so that they may initiate the linking process for your home loan and MCLR.
- After the linking between the marginal cost of funds based lending rate and PNB Home Loan is done, you must ask the bank to reduce the quantum of spread. You will have to pay a processing fee for the linking. After this the interest rates associated with your home loan will be refreshed as per MCLR.
What Should the Existing Borrowers Do?
Switching to marginal cost of funds based lending rate can reap great benefits. You can save a great deal of interest which you would have paid otherwise with base rate on your housing loan. The existing borrowers, however, will not be able to enjoy the benefits of MCLR right away. Most of the home loan agreements associated with marginal cost of funds based lending rate are borrowed after a year. The existing borrowers of PNB home loan will have to wait till their home loan rates are renewed. The new rate of interest on the date of reset will be determined by MCLR rate cuts over the past half-year or one year.
PNB Home Loan Rate and MCLR:
- The overnight loans, cash credit, etc. are shorter duration loans. They have been linked to the shorter period MCLR. The longer period loans like vehicle loan, housing loan, etc. have been linked to the longer duration marginal cost of funds based lending rates.
- The applicable rate on the floating rate housing loans has two distinct parts. One is the applicable benchmark rate and the other one is the margin or spread on top of benchmark.
- Floating rate housing loans that have been sanctioned by Punjab National Bank is benchmarked to MCLR with specific tenures like 6 months, 1 year, 3 years, etc.
Punjab National Bank MCLR History
- The overnight loans, cash credit, etc. are shorter duration loans. They have been linked to the shorter period MCLR. The longer period loans like vehicle loan, housing loan, etc. have been linked to the longer duration marginal cost of funds based lending rates.
- The applicable rate on the floating rate housing loans has two distinct parts. One is the applicable benchmark rate and the other one is the margin or spread on top of benchmark.
- Floating rate housing loans that have been sanctioned by Punjab National Bank is benchmarked to MCLR with specific tenures like 6 months, 1 year, 3 years, etc.
Month | MCLR (%) | |||||
Overnight | 1-Month | 3-Month | 6-Month | 1-Year | 3-Years | |
May 2024 | 8.25 | 8.3 | 8.45 | 8.65 | 8.8 | 9.1 |
April 2024 | 8.3 | 8.35 | 8.45 | 8.65 | 8.8 | 9.1 |
March 2024 | 8.3 | 8.35 | 8.45 | 8.65 | 8.8 | 9.1 |
February 2024 | 8.3 | 8.35 | 8.45 | 8.65 | 8.8 | 9.1 |
January 2024 | 8.25 | 8.3 | 8.4 | 8.6 | 8.7 | 9 |
December 2023 | 8.2 | 8.25 | 8.35 | 8.55 | 8.65 | 8.95 |
November 2023 | 8.2 | 8.25 | 8.35 | 8.55 | 8.65 | 8.95 |
October 2023 | 8.15 | 8.25 | 8.35 | 8.55 | 8.65 | 8.95 |
September 2023 | 8.15 | 8.25 | 8.35 | 8.55 | 8.65 | 8.95 |
August 2023 | 8.1 | 8.2 | 8.3 | 8.5 | 8.6 | 8.9 |
July 2023 | 8.1 | 8.2 | 8.3 | 8.5 | 8.6 | 8.9 |
June 2023 | 8.1 | 8.2 | 8.3 | 8.5 | 8.6 | 8.9 |
May 2023 | 8 | 8.1 | 8.2 | 8.4 | 8.5 | 8.8 |
April 2023 | 8 | 8.1 | 8.2 | 8.4 | 8.5 | 8.8 |
March 2023 | 8 | 8.1 | 8.2 | 8.4 | 8.5 | 8.8 |
February 2023 | 7.9 | 8 | 8.1 | 8.3 | 8.4 | 8.7 |
January 2023 | 7.8 | 7.9 | 8 | 8.2 | 8.3 | 8.6 |
December 2022 | 7.45 | 7.5 | 7.6 | 7.8 | 8.1 | 8.4 |
November 2022 | 7.4 | 7.45 | 7.55 | 7.75 | 8.05 | 8.35 |
October 2022 | 7.1 | 7.15 | 7.25 | 7.45 | 7.75 | 8.05 |
FAQs on PNB Bank MCLR & Base Rate
- What is PNB MCLR?
PNB MCLR refers to the minimum lending rate below which the bank cannot lend.
- How often is PNB MCLR updated?
PNB MCLR is updated every month.
- What is the purpose of MCLR?
With the MCLR system, banks are required to promptly adjust their interest rates whenever there is a change in the Repo rate. MCLR aims to enhance transparency and standardization in the interest rates applied to loans by banks. Moreover, it ensures that the interest rate is equally advantageous for both banks and borrowers.
- What is the difference between MCLR and base rate?
MCLR represents a more advanced version of the base rate. While the base rate relies on the average finance cost, MCLR depends on the marginal or incremental cost of funds.
- Is PNB MCLR decided by the RBI?
PNB MCLR is calculated by the bank based on the guidelines issued by the RBI.
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