New Delhi: One of India’s top banks, HDFC Bank recently announced a reduction in its marginal cost based lending rate (MCLR) by up to 85 basis points for certain tenors. The bank’s website states that the revised loan rates have come into effect from April 10, 2023. The overnight MCLR is now 7.8 per cent instead of the earlier rate of 8.65 per cent after a reduction of 85 basis points.
According to HDFC Bank’s website, the one month MCLR has also been reduced by 70 basis points from 8.65 per cent to 7.95 per cent. The reduced rates take effect on April 10, 2023. ,Also Read: Sukanya Samriddhi Yojana: Your Girl Child Will Get Rs 65 Lakh Returns – Check Calculator Here,
The three-month MCLR currently stands at 8.30 per cent, lower than its previous rate of 8.70 per cent, a reduction of 40 basis points. The six-month MCLR has also been reduced by 10 basis points to 8.70 per cent from its earlier rate of 8.80 per cent. ,Also read: FD interest rates for senior citizens 2023: These banks are offering over 9%,
The Central Bank of India (RBI), which kept the repo rate at 6.5 per cent during its bi-monthly monetary policy meeting on April 6, 2023, may have an impact on the decision.
Any floating rate loan sanctioned after April 1, 2016, should be linked to MCLR as per RBI regulations.
Bank of Baroda (BoB) has increased its benchmark lending rates by 5 basis points for all tenors. The new price will be applicable from April 12. With the most recent increase, term loan EMIs linked to the relevant benchmark rates may also increase.
The bank will increase the overnight MCLR (marginal cost of funds based lending rate) by 5 basis points to 7.95% by April 12. The current rate is 7.9%.
The lowest interest rate that a financial institution, such as HDFC Bank, can charge for a fixed loan is called the Marginal Cost Based Lending Rate (MCLR). This serves as the lower limit of the interest rate on the loan, unless RBI specifies differently.