HDFC Bank Cuts Lending Rates: Check New Rates
HDFC Bank has cut its MCLR by up to 5 basis points on select tenures, with rates now ranging from 8.55% to 8.75%, effective Aug. 7.
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HDFC Bank has announced a revision in its Marginal Cost of Funds-based Lending Rates (MCLR), reducing rates by up to 5 basis points for various loan tenures. This will benefit borrowers with loans linked to the MCLR benchmark, and it would ease their borrowing costs.
The bank’s revised MCLR now stands between 8.55% and 8.75%, down from the previous range of 8.60% to 8.80% applicable in July. These new rates have been effective Aug. 7.
Breakdown Of The Latest MCLR Rates
HDFC Bank has cut its overnight and one-month MCLR by 5 basis points, lowering them to 8.55% from 8.60%. The three-month MCLR has also been trimmed by 5 basis points, moving from 8.65% to 8.60%.
Similarly, the six-month MCLR has decreased from 8.75% to 8.70%. A notable reduction was seen in the one-year MCLR, which dropped by 30 basis points to 8.70% from 9.05%.
The two-year MCLR remains steady at 8.75%, and the three-year MCLR was lowered by 5 basis points to 8.75%.
MCLR is the lowest interest rate that banks and lenders can charge on loans. It acts as a minimum limit, helping make lending rates clear and transparent. Introduced by the Reserve Bank of India (RBI) in 2016, MCLR helps borrowers understand the basic cost of borrowing and how interest rates may change.
Revised HDFC Bank MCLR Rates
Overnight: 8.55%
One month: 8.55%
Three months: 8.60%
Six months: 8.70%
One year: 8.70%
Two years: 8.75%
Three years: 8.75%
RBI Maintains Repo Rate
Earlier, on Aug. 6, the Reserve Bank of India (RBI) announced that its Monetary Policy Committee (MPC) has decided to keep the repo rate steady at 5.5%, maintaining a neutral monetary policy stance. Since February, RBI has cut the repo rate by a total of 100 basis points (1%) to stimulate economic growth.
A reduction in the repo rate allows banks and financial institutions to borrow funds at a lower cost, which usually leads to a decrease in lending rates for consumers. But this also results in lower deposit rates, as banks no longer need to offer high interest to attract deposits.
HDFC Home Loan Rates
HDFC Bank’s home loan interest rates are variable and linked to the repo rate throughout the loan tenure. As of Aug. 7, for salaried and self-employed borrowers, the special home loan interest rates range from 7.90% to 13.20%.
