HDFC Bank MCLR Rate Hike: Customers of HDFC Bank, India’s largest private sector lender, are likely to spend more money as interest on taking any loan from the lender. HDFC Bank has increased its marginal cost of lending rate, or MCLR, for all tenors, according to its website. New HDFC Bank MCLR Rates With effect from Thursday 7 July. HDFC Bank hike in MCLR rate This comes at a time when the Monetary Policy Committee of the Reserve Bank of India during its MPC meeting last month increased its repo rates by 50 basis points.
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. HDFC Bank’s MCLR rates have been increased to 7.70 per cent, 7.75 per cent and 7.80 per cent for overnight, one month and three months, which is an increase of 20 bps across all tenors. For tenures of six months and one year, HDFC Bank’s MCLR rates are 7.90 per cent and 8.05 per cent respectively, which also saw an increase of 20 bps. HDFC Bank MCLR has been increased by 20 bps to 8.15 per cent and 8.25 per cent for two and three-year tenures respectively.
According to the HDFC Bank website, the MCLRs for the period with effect from July 7, 2022 are as follows:
Overnight: Old rate – 7.50 percent; New rate – 7.70 percent
One month: Old rate – 7.55 percent; New rate – 7.75 percent
Three months: Old rate – 7.60 percent; New rate – 7.80 percent
six months: chronic rate – 7.70 percent; New rate 7.90 percent
One year: Old rate – 7.85 percent; New rate 8.05 percent
Two-year old rate – 7.95 per cent; New rate 8.15 percent
three-year old rate – 8.05 percent; New rate 8.25 percent
Will Home Loan EMI, Car Loan EMI Increase After HDFC Bank MCLR Hike?
As a result of the hike in HDFC Bank MCLR rate, housing, vehicle and personal loans are going to become more expensive as EMIs will increase. However, existing home loan borrowers should note that the EMI will be revised only when the reset date of their loan approaches. On the reset date, the lender will increase or revise the interest rate on the home loan of the borrowers based on the existing MCLR. This means that if an individual’s home loan is based on MCLR, and the reset date is in September, he will have to pay the increased EMI from September. Till then, the borrower will pay based on its prevailing rates.
“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 limit is applicable to borrowers. unless specified otherwise by the Reserve Bank of India,” HDFC Bank said on its website. The MCLR is subject to changes in the RBI repo rate.
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