HDFC Increases MCLR, Impacting Loan EMIs(Revised MCLR Rates)

In a surprising move for the new year, HDFC, the country’s largest private sector bank, has announced an increase in the Marginal Cost of Funds Based Lending Rate (MCLR) on certain tenure loans.
The bank has raised MCLR by 10 basis points, equivalent to 0.10 percent. This decision is expected to impact EMIs for various floating loans, including home loans, personal loans, and auto loans, thereby affecting customers’ finances in the coming year.
The revised rates became effective on January 8, 2024.

Revised HDFC Bank MCLR Rates

Overnight MCLR: Increased by 10 bps, now standing at 8.80 percent.

One-month MCLR: Up by 5 bps, reaching 8.80 percent.

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Three-month MCLR: A slight increase of one basis point, now at 8.90 percent.

Six-month MCLR: Set at 9.205 percent.

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MCLR for periods over one year: Increased to 9.25 percent from the previous 9.20 percent.

MCLR for periods over 2 years: Remains at 9.25 percent.

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MCLR for periods over 3 years: Decreased to 9.30 percent.

Factors Influencing MCLR and Loan Impact

Several factors, including deposit rates, repo rates, operational costs, and the cost of maintaining cash reserve ratios, contribute to the determination of MCLR.

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Changes in the repo rate directly affect MCLR, subsequently impacting loan interest rates and increasing EMIs for borrowers.

The revised MCLR rates came into effect from November 7, 2023, as per information available on the HDFC Bank website.


Implications for Loan Customers

The increase in MCLR is expected to affect the interest rates on various loan products, such as home loans, auto loans, and personal loans.

Both existing and new loan customers may experience higher EMIs, leading to increased financial obligations.


This announcement from HDFC Bank comes as a surprise for customers as they navigate their financial plans for the year, creating a potential financial challenge for many.

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