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HDFC Bank raises loan interest rates

Latest HDFC Bank MCLRAccording to ET, the Marginal Cost of Funds-Based Lending Rates (MCLR) at HDFC Bank now range from 8.90% to 9.35%. The overnight MCLR has seen a 10 basis points (bps) increase, moving from 8.80% to 8.90%. Similarly, the one-month MCLR has also gone up to 8.90% from 8.85%. For the three-month tenure, the MCLR is now 9.10% compared to the previous 9%. The six-month MCLR stands at 9.30%. The one-year MCLR, relevant for various consumer loans, has risen by 5 bps to 9.30% from 9.25%. However, the three-year MCLR remains unchanged at 9.35%.

HDFC Bank loan interests: HDFC Bank has recently changed its loan interest rates, impacting various tenures. The changes, which come into effect from February 8, 2023, are outlined on the HDFC Bank website. Notably, approximately 30% of new loans are for home purchases exceeding Rs 75 lakh. Here are the latest adjustments:

Other loan interest rates at HDFC BankIn addition to changing MCLR rates, HDFC Bank has updated its Base Rate to 9.25% since September 25, 2023. The Benchmark Prime Lending Rate (PLR) is now 17.85% per annum, also effective from the same date. These rates are reviewed monthly, taking into account factors such as the repo rate and other borrowing rates. It's essential to note that loans cannot be provided at rates lower than the MCLR.What is MCLR?The marginal cost of funds-based lending rate (MCLR) is the minimum interest rate below which the bank is not supposed to lend to borrowers. Prior to the emergence of MCLR, the minimum rate enforced by RBI used to be the ‘base rate’.The revision of MCLR comes in the run up to the RBI’s monetary policy committee (MPC) that kicked off on Feb 6.Headed by RBI Governor Shaktikanta Das, the central bank’s MPC started three-day deliberations in Mumbai on 6 February. This is the first policy committee of this calendar year, and also happens to be the first meeting after the presentation of Interim Budget 2024.