The country's largest private lender HDFC Bank has cut its marginal cost of funds-based lending rates, or MCLR, by 0.10 per cent across all tenors, effective August 7, according to a source.
The bank's revised MCLR for one-year tenor loans will now be 8.60 per cent.
Indian banks largely price their MCLR benchmark loan rates according to the cost of deposits. With this cut, the bank's lending rates on products like auto or home loans may also come down.
The Reserve Bank of India has been prodding lenders to reduce lending rates to push up credit demand as the economy slows down.
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