HDFC, the country’s largest private sector bank, has raised its Marginal Cost of Lending Rate (MCLR) for certain loan tenures shortly after Diwali, impacting both new and existing customers.
This increase means that if you’re planning to take a car or home loan, you’ll face a higher interest rate, resulting in a more costly loan.’
Additionally, for those with existing loans, the monthly EMI will also rise. HDFC Bank has implemented a 0.05% increase in the MCLR.
HDFC Bank revised MCLR
The revision of HDFC Bank’s MCLR impacts the EMI of all floating-rate loans, including home, personal, and auto loans.
With the increase in MCLR, both new and existing customers will face higher loan interest rates, leading to an increase in their EMI. These new rates are effective from November 7, 2024.
HDFC Bank has raised the MCLR by 0.05% for the six-month and three-year periods, with the benchmark MCLR now ranging between 9.15% and 9.50%.
HDFC Bank New MCLR Rates:
The overnight MCLR has increased from 9.10% to 9.15%.
The one-month MCLR has risen from 9.15% to 9.20%.
The three-month MCLR remains unchanged at 9.30%.
The six-month MCLR remains unchanged at 9.45%.
The one-year MCLR remains unchanged at 9.45%.
For tenures above 2 years, the MCLR is 9.45%, with no change.
For tenures above 3 years, the MCLR is 9.50%, with no change.
This is how MCLR is decided?
When determining the MCLR, several factors are considered, including deposit rates, repo rates, operational costs, and the cost of maintaining the cash reserve ratio.
Changes in the repo rate influence the MCLR, and any adjustments in the MCLR lead to changes in loan interest rates, resulting in higher EMIs for borrowers.
The interest rates for auto loans, home loans, and personal loans will rise
Changes in the MCLR impact the interest rates of all types of loans, including home, auto, and personal loans.
When the MCLR rises, existing loan customers will have to pay higher EMIs, while those taking new loans will face higher interest rates, making their loans more expensive.
