PNB raises MCLR rates by 10 bps from 1 Nov: car-loan checks

By Geetanjali · 01 Nov, 2026

Punjab National Bank has raised all six MCLR benchmarks by 10 basis points from 1 November 2026. The change can affect MCLR-linked vehicle loans at their reset, but not every car-loan EMI.

PNB raises MCLR rates by 10 bps from 1 Nov: car-loan checks

Punjab National Bank (PNB) has raised its Marginal Cost of Funds Based Lending Rate (MCLR) by 10 basis points across all six listed tenors, with the revised rates effective 1 November 2026. For vehicle buyers and existing borrowers, the practical effect is limited to loans whose agreements use MCLR and to the relevant reset date; it does not automatically raise every PNB car-loan EMI.

Key takeaways

PNB has lifted each of its six listed MCLR tenors by 10 basis points, or 0.10 percentage point, from 1 November 2026.
The revised one-year MCLR is 8.90%, compared with 8.80% from 1 October 2026.
The change matters mainly to borrowers whose vehicle-loan agreement is linked to MCLR, and when their contractual reset arrives.
PNB’s repo-linked lending rate is listed at 8.35% from 8 October 2026 and its Base Rate at 9.50% from 1 July 2026; both sit outside this MCLR revision.

What PNB changed from 1 November

PNB’s official MCLR table compares the rates effective from 1 October 2026 with the revised rates effective from 1 November 2026. Every listed tenor is higher by the same 10 basis points. The bank’s exchange disclosure dated 31 October 2026 also says the repo-linked lending rate (RLLR) and Base Rate remain unchanged.

MCLR tenor	Existing, effective 1 Oct 2026	Revised, effective 1 Nov 2026
Overnight	8.00%	8.10%
One month	8.25%	8.35%
Three months	8.50%	8.60%
Six months	8.65%	8.75%
One year	8.80%	8.90%
Three years	9.10%	9.20%

Source: PNB’s rate table, accessed 1 November 2026. Each percentage is an annual benchmark rate; the customer’s final loan rate can include a separate spread or margin.

Which vehicle-loan borrowers may be affected?

MCLR is a benchmark, not the final interest rate printed on every loan account. Business Standard’s explainer on bank benchmark changes says MCLR is used for floating-rate products such as car loans sanctioned before October 2019, while newer floating-rate retail loans generally use an external benchmark linked to the RBI repo rate. The exact treatment depends on the loan agreement and the product’s benchmark.

That means a PNB customer needs to identify the benchmark named in the sanction letter or loan statement. An MCLR-linked loan may be repriced when its specified reset tenor arrives. A vehicle loan linked to RLLR, another external benchmark or a fixed rate is not automatically covered by this particular MCLR update. PNB’s current page lists its RLLR at 8.35% from 8 October 2026 and its Base Rate at 9.50% from 1 July 2026, separate from the MCLR table.

Why the headline does not give an EMI number

A 10-basis-point increase in a benchmark does not reveal the rupee change in a borrower’s EMI. The result depends on the outstanding principal, remaining tenure, contractual spread, reset frequency and whether the lender changes the EMI, the tenure or both when the benchmark is reset. Those details are not contained in PNB’s general rate notification.

For a new vehicle buyer, the MCLR table is also not the same thing as a personalised car-loan quote. The final rate can vary by product, borrower profile, vehicle, down payment, tenure and fees. The practical comparison is therefore the rate and total repayment shown in the offer or key facts document, not the benchmark alone. FuelPrice’s guide to comparing car-loan offers explains how the benchmark, annual percentage rate, EMI and charges fit together.

What to check in the loan records

Existing borrowers can use the November notification as a prompt to read the relevant documents. The useful checks are:

the benchmark named in the sanction letter: MCLR, RLLR, another external benchmark or fixed rate;
the MCLR tenor or reset cycle, plus the next reset date;
the spread or margin added to the benchmark and whether it can change under the contract;
the outstanding principal and remaining tenure shown in the latest statement;
the lender’s updated amortisation schedule if the account is repriced.

These checks help separate a confirmed benchmark movement from an assumption about a particular account. They also matter for fleet operators with several vehicle loans, because different sanction dates or reset cycles can leave accounts exposed at different times.

How this fits into a vehicle budget

Loan cost is only one part of owning and operating a vehicle. A change in the benchmark can alter financing cost for an affected account, while fuel, tolls, insurance, maintenance and parking remain separate expenses. The FuelPrice fuel-cost calculator can help estimate running fuel spend separately from the EMI, using the vehicle’s mileage, distance and fuel price.

For a longer journey, the road-trip planner can add route distance and travel planning context. Neither tool predicts a lender’s revised EMI; the loan statement and contract remain the source for that figure.

What changes now and what to watch

The confirmed change is PNB’s MCLR table effective 1 November 2026. The next relevant event for an affected borrower is the contractual reset and the lender’s account-level communication, not an automatic change to every car-loan EMI on the same day. Future benchmark revisions would require separate notifications.

For readers considering a vehicle purchase, the useful question is not whether the MCLR headline is high or low in isolation. It is whether the quoted loan uses that benchmark, what spread is added, when the rate can reset and how the total repayment compares with other available structures. For an existing borrower, those same four records show whether the November change is relevant to the account.