HDFC Bank increases loan rates by up to 10 bps

HDFC Bank has increased the benchmark marginal cost of funds-based lending rates (MCLR) of loans by up to 10 basis points on select tenures. The new rates are effective from February 8, 2023, according to the HDFC Bank website.

Home loans above Rs 75 lakh account for 30% of new loans; check latest home loan interest rates

Latest HDFC Bank MCLR

HDFC Bank’s MCLR ranges between 8.90 per cent and 9.35 per cent. The overnight MCLR has been raised by 10 bps from 8.80 per cent to 8.90 per cent. The one-month MCLR of HDFC Bank has increased by 10 bps to 8.90 per cent from 8.85 per cent. The three-month MCLR will be raised to 9.10 per cent from 9 per cent. The six-month MCLR is hiked to 9.30%. The one-year MCLR, which is linked to many consumer loans, has been raised by 5 bps to 9.30 per cent from 9.25 per cent. The 3-year MCLR is kept unchanged at 9.35 per cent.

Tenor MCLR
Overnight 8.90%
1 Month 8.95%
3 Month 9.10%
6 Month 9.30%
1 Year 9.30%
2 Year 9.35%
3 Year 9.35%

Source: Bank website

HDFC Bank other loan interest rates

The revised Base Rate is 9.25% and has been effective since September 25, 2023. The Benchmark PLR – 17.85% per annum with effect from September 25.

Every month, the repo rate and other borrowing rates are taken into consideration while adjusting the MCLR. A bank cannot offer a loan that is less than the MCLR.

What is MCLR

The Marginal Cost of the Fund-Based Lending Rate or the MCLR is the minimum interest rate a financial institution needs to charge for a specific loan. It dictates the lower limit of the interest rate for a loan. This rate limit is set in stone for borrowers unless specified otherwise by the Reserve Bank of India.

According to the HDFC Bank, “The Reserve Bank of India (RBI) has made it clear that banks should allow base rate borrowers to switch to MCLR when there is a change in the policy rate. However, before you decide, you should seek professional guidance. Financial advisors can provide you with updated information and guide you through the process of transfer.”

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