HDFC Bank’s Interest Rate Hike: The largest private bank in India, HDFC Bank, has increased the interest rates on certain loans, affecting its consumers. On certain HDFC Bank loans, consumers will pay higher interest rates beginning on September 7. The bank has increased its Marginal Cost of Lending Rate (MCLR) by 15 basis points, or 0.15 percent. On September 7th, these new rates went into effect, resulting in increased EMIs for clients with HDFC home loans, auto loans, personal loans, and other loans.
Here are the most recent MCLR rates for HDFC Bank:
- The overnight MCLR has risen from 8.35% to 8.55%.
- The 1-month MCLR rose from 8.45% to 8.55%.
- The 3-month MCLR rose from 8.70% to 8.80%.
- The 6-month MCLR rose from 8.95% to 9.05%.
The one-year MCLR-linked loan rate increases by 0.05%, from 9.10% to 9.15%. The MCLR for one- and two-year loans has also increased by 0.05%, bringing it to 9.20%.
Effective as of June 16th, the new base rate for HDFC Bank is 9.20%, while the benchmark PLR rate is 17.70%.
This increase in MCLR rates has an effect on loans because MCLR, which was introduced by the Reserve Bank of India in 2016, functions as the internal benchmark for banks offering credit and home loans under a floating interest rate system. As MCLR rises, the cost of borrowing for customers increases, which is why HDFC Bank has implemented these adjustments.
