HDFC Bank MCLR Raised | The burden of EMIs on consumers’ pockets
Lending Rates | HDFC Bank | HDFC Bank has increased the Margin Cost of Funds Based Lending Rates (MCLR) by 0.05 percent. This increase is made for selected loan tenure loans.
HDFC Bank | MCLR | HDFC Bank, the largest private sector bank, has given its customers a big shock ahead of Diwali. HDFC Bank has increased the Margin Cost of Funds Based Lending Rate (MCLR) by 0.05 percent. This increase is made for selected loan tenure loans. Increase in MCLR will make auto loans, home loans and personal loans costlier and EMIs will increase. The new rates are effective from November 7, 2023.
The Reserve Bank of India (RBI) has kept the repo rate unchanged in the last five monetary policy reviews. Despite this, the bank has increased the interest rate. After the merger of HDFC Limited with itself, the net interest margin of the bank has decreased.
New interest rates
Under the revised interest rates, the one-day MCLR has increased to 8.65% from the current 8.60%. Whereas the MCLR for 3 years has gone from 9.25% to 9.30%. However, the MCLR has been retained at 9.20% for a tenure of one year.
What is MCLR?
MCLR is actually the minimum interest rate below which no bank can lend to customers. Banks are required to declare their MCLR every month for fifteen days, one month, three months, six months, one year and two years. An increase in MCLR means interest rates on retail loans like home loans, car loans will increase.