HDFC Bank MCLR Rate Hike: India’s largest private sector lender HDFC Bank has increased the marginal cost of lending rate, or MCLR, for all tenors, according to its website. HDFC Bank said the MCLR, a key point in deciding loan interest, has been hiked by 35 basis points. The HDFC Bank MCLR rate hike comes at a time when the Monetary Policy Committee of the Reserve Bank of India has started its scheduled deliberations and is expected to go with another rate hike amid rising inflation.
The HDFC Bank MCLR rate hike will mean an increase in loan interest for new and existing borrowers, including equated monthly installments (EMIs) for home loans, vehicle loans and any other loan related to marginal cost. The bank had on May 7 increased its MCLR rates by 25 basis points, days after the RBI hiked its repo rates by 40 basis points. It should be noted here that 100 basis points equals 1 percent. Hence after the latest HDFC Bank MCLR hike, loan EMIs may increase by 35 per cent.
According to the HDFC Bank website, the MCLRs for the period with effect from May 7, 2022 are as follows:
Overnight: Old rate – 7.15 percent; New rate – 7.50 percent
One month: Old rate – 7.20 percent; New rate – 7.55 percent
Three-month: Old rate – 7.25 percent; New rate – 7.60 percent
six months: chronic rate – 7.35 percent; New rate 7.70 percent
One year: Old rate – 7.50 percent; New rate 7.85 percent
Two-year old rate – 7.60 per cent; New rate 7.95 percent
three-year old rate – 7.70 per cent; New rate 8.05 percent
“Marginal cost of funds-based lending rate or MCLR is the minimum interest rate that a financial institution is required to charge for a specific loan. It sets the lower limit of the interest rate for the loan. This rate ranges the borrowers unless specified otherwise by the Reserve Bank of India,” HDFC Bank said on its website.
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