HDFC Bank, the largest private sector bank in the country, has surprised its customers by raising the MCLR by 0.05% on some term loans.
The MCLR rate has been increased only for the overnight period, from 9.15 percent to 9.20 percent.
The MCLR has not been changed for other periods. The updated MCLR rate for HDFC Bank took effect on December 7, 2024.
What happens when MCLR increases?
When a bank revises its MCLR, it impacts the EMI for all types of floating loans, including home loans, personal loans, and auto loans.
An increase in MCLR leads to a rise in loan interest, which results in higher EMIs for existing borrowers.
For example, if you’re planning to take a loan for a car or a house, the interest rate will be higher.
Additionally, the EMIs for those with existing loans will also increase. Recently, HDFC Bank raised its MCLR by 0.05 percent on the overnight period.
HDFC Bank New MCLR Rates – Effective from 7th December 2024
- HDFC Bank has increased the overnight MCLR from 9.15% to 9.20%.
- The one-month MCLR remains unchanged at 9.20%.
- The three-month MCLR remains unchanged at 9.30%.
- The six-month MCLR stays at 9.45%.
- The one-year MCLR is unchanged at 9.45%.
- For tenures above 2 years, the MCLR remains at 9.45%.
- For tenures above 3 years, the MCLR stays at 9.50%.
How is MCLR determined?
Several factors are considered when determining the MCLR, including the deposit rate, repo rate, operational costs, and the cost of maintaining the cash reserve ratio. Changes in the repo rate influence the MCLR.
When the MCLR changes, it impacts the interest rate on loans, leading to a change in the EMI for loan borrowers. Here’s how an increase or decrease in MCLR affects loans.
