HDFC Bank Increases MCLR Rates For Select Tenures: Check Details Here
The new MCLR rates will be effective from June 7.
HDFC Bank, one of the leading private sector lenders, has recently announced an upward revision in its benchmark marginal cost of funds-based lending rates (MCLR) for specific tenures, effective from June 7.
The revised MCLR rates apply to tenures ranging from overnight to six months.
HDFC Bank's move will impact borrowers of home loans, personal loans and vehicle loans whose loans are tied to the MCLR.
As per the information available on HDFC Bank's official website, the overnight MCLR has been raised by 15 basis points to 8.10%, marking an increase from the previous rate of 7.95%.
The one-month MCLR has witnessed a 10 basis point hike and is now set at 8.20% compared to the previous 8.10%.
Similarly, the three-month MCLR has been increased by 10 basis points to 8.50%, up from the earlier rate of 8.40%.
In contrast, the six-month MCLR experienced a relatively modest increase of 5 basis points, resulting in a new rate of 8.85% compared to the previous rate of 8.80%.
Notably, the MCLR rates for tenures exceeding one year have remained unchanged.
HDFC Bank's current 1-year MCLR stands at 9.05%, while the 2-year and 3-year MCLR rates are reported as 9.10% and 9.20%, respectively.
This recent revision in MCLR rates follows a similar adjustment made by HDFC Bank on May 8, where a 5 basis point to 15 basis point increase was implemented across various MCLR rates.
By adjusting the MCLR rates, HDFC Bank aims to reflect the prevailing market dynamics and maintain a balance between its borrowing costs and lending rates for customers.
Customers are advised to visit the official HDFC Bank website or visit the nearest branch for more detailed information
What Is MCLR?
MCLR is the minimum interest rate that a financial institution charges for a particular loan, and it indicates the loan's lowest possible interest rate. The factors taken into account when determining the MCLR include deposit rates, repo rates, operational costs, and the cost of maintaining the cash reserve ratio.
Before the implementation of the MCLR, the base rate served as the minimum interest rate for loans mandated by the Reserve Bank of India. However, the MCLR rate is now the basis of the interest rate for loans, and it depends on the marginal cost of funds.
