The lending rate at ICICI Bank is increased by 15 bps

1 Aug 2022 , 02:55 PM

The RBI is expected to boost interest rates later this week, therefore ICICI Bank, the second-largest lender in the private sector, increased its lending rates on Monday by 0.15 % across all tenors.

Under the marginal cost of the funds-based lending rate (MCLR) regime, rates have gone up for all tenors, making EMIs more expensive for borrowers whose loans were benchmarked against MCLR.

According to statistics on the bank’s website, under the new rates, which took effect on August 1, the bank’s one-year MCLR climbed by 15 basis points, or 0.15 %, to 7.90 %, while the overnight MCLR jumped to 7.65 %. Given that a bank’s long-term loans, such as house loans, are tied to this rate, the one-year MCLR is significant from the standpoint of retail lending.

The rate increase occurs before this week’s Monetary Policy Committee (MPC) meeting of the RBI. It is generally anticipated that the MPC would increase interest rates to reduce the high inflation rate. HDFC, a mortgage lender, raised its lending rate by 0.25 % last week.