- By Aditya Pratap Singh
- Mon, 08 Jul 2024 04:04 PM (IST)
- Source:JND
HDFC Bank MCLR: In a big move, HDFC Bank, India's largest private sector bank, revised the MCLR on loans of some selective tenures. The revision of the bank's MCLR affects the EMI of all floating-rate loans including home loans, personal loans, and auto loans as it raises the loan interest, hence existing customers have to pay more EMI.
These new rates have come into effect from today i.e. July 8, 2024. HDFC Bank's benchmark marginal cost of funds-based lending rate (MCLR) is between 9.05% and 9.40%. The bank has raised it by 0.10%.
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HDFC Bank New MCLR Rates
The overnight MCLR of HDFC Bank has been hiked from 8.95% to 9.05%.
One-month MCLR has been increased from 9% to 9.10%.
Three-month MCLR has also been raised from 9.15% to 9.20%.
Six-month MCLR has been increased from 9.30% to 9.35%.
The one-year MCLR has been hiked from 9.30% to 9.40%. The one-year MCLR is the rate applicable to many types of loans.
The two-year MCLR has been raised from 9.30% to 9.40%.
The three-year MCLR has been raised from 9.35% to 9.40%.
How MCR is decided
MCLR is decided based on various factors, including deposit rate, operational cost, repo rate, and cash reserve ratio (CRR). The changes in the repo rate affect the MCLR rate and changes in MCLR affect the interest rate of the loan, which in turn raises the EMI for borrowers.
EMI of auto loans, home loans, and personal loans to increase
The increase or decrease in MCLR affects the interest rate of all types of loans including home loans, auto loans, and personal loans. When MCLR increases, loan customers have to pay higher EMIs than before. Customers taking new loans will get an expensive loan.
