ICICI Bank account holders alert!: Home loan, auto, personal, other retail loans turn cheaper from October 1

ICICI Bank MCLR Rate: The ICICI Bank has announced Dussehra gift for its customers as the bank has reduced Marginal Cost of Funds based Lending Rate (MCLR) by 10 bps (basis points). As a result of this decision, the ICICI home loan, auto loan, personal loan and other retail loans would become cheaper as the lending rates would go down by 0.1 per cent. Now, after the reduction of 0.1 per cent interest rate on the retail ICICI loans, the customer will have to pay lesser EMI on the loan they have availed from the ICICI Bank. The reduced MCLR for the ICICI Bank customers is effective from October 1st i.e. today.

Earlier in September this year, the ICICI Bank had reduced interest rates by the same 0.1 per cent. If we look at the ICICI Bank lending rates from April 2019, it has reduced its retail loan lending rates by 0.3 per cent or 30 bps, which includes the recent 0.1 per cent MCLR rate cut. 

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The RBI has already issued a circular on 4th September 2019 asking all Indian banks to link their retail loans with the Repo Linked Lending Pattern (RLLP). Some banks like SBI and IOB have already linked their retail loans with the RLLP.

After the reduction in ICICI Bank's MCLR by 10 bps, annual MCLR for ICICI Bank customers is now 8.55 per cent while day-to-day MCLR has become 8.3 per cent. MCLR plays a big role in the interest rate on any loan lend by the bank. So, after the reduction in MCLR by the ICICI Bank, its loans would become cheaper and that would reflect in the lower EMI during the loan repayment for the customers.