HDFC Bank Announces MCLR Hike, Impacting Home and Auto Loan EMIs

In an unexpected move before the festive season, HDFC, India’s largest private sector bank, has announced an increase in interest rates on certain term loans.

The bank has raised its Marginal Cost of Funds Based Lending Rate (MCLR) by 10 basis points, translating to a 0.10 percent hike.

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This adjustment in the MCLR will result in higher Equated Monthly Installments (EMIs) for various floating-rate loans, including home loans, personal loans, and auto loans.

As festivities approach, customers might find their budgets impacted by increased EMIs.

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New Rates Effective From Today

The revised interest rates have come into effect as of October 7, 2023.

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HDFC Bank considers several factors when determining the MCLR, including deposit rates, repo rates, operational costs, and cash reserve ratio maintenance expenses.

Changes in the repo rate directly influence the MCLR rate, which, in turn, affects the interest rate on loans, ultimately leading to higher EMIs for borrowers.

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HDFC Bank’s New MCLR Rates:

  • Overnight MCLR increased by 10 basis points to 8.60 percent from the previous 8.50 percent.
  • One-month MCLR raised by 15 basis points to 8.65 percent from 8.55 percent.
  • The three-month MCLR increased by 10 basis points to 8.80 percent from 8.85 percent.
  • Six-month MCLR saw a 5 basis points hike, now standing at 9.10 percent from 9.05 percent.
  • MCLR for periods exceeding one year is 9.20 percent, marking a 0.05 percent increase from the previous 9.15 percent.
  • MCLR for periods exceeding two and three years remains at 9.20 percent and 9.25 percent, respectively, with no changes.

Impact on EMIs for Auto, Home, and Personal Loans


The uptick in MCLR rates will directly affect the interest rates on all related loans, including auto loans, home loans, and personal loans.

Borrowers will experience higher EMIs compared to their previous payments, while new loan applicants will face higher borrowing costs.


As the festive season approaches, this development is expected to impact consumers’ financial planning.

Base Rate Increase

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In addition to the MCLR adjustment, HDFC Bank has also increased its Prime Lending Rate (PLR) base rate by 5 to 15 basis points, effective from September 25, 2023.

The benchmark PLR now stands at 17.85 percent, up from the previous 17.70 percent. The base rate has been raised to 9.25 percent from its previous rate of 9.20 percent.

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