HDFC Bank raises loan costs: HDFC Bank, India's largest private bank, has increased the interest rates on selected loans, impacting its customers. Starting from September 7th, customers will pay higher interest rates on certain HDFC Bank loans. The bank has raised its benchmark Marginal Cost of Lending Rate (MCLR) by 0.15%, or 15 basis points. These new rates took effect on September 7th, leading to increased EMIs for customers with HDFC home loans, car loans, personal loans, and more.
Here are the latest HDFC Bank MCLR rates:
1. Overnight MCLR: Increased from 8.35% to 8.50%.
2. One-month MCLR: Increased from 8.45% to 8.55%.
3. Three-month MCLR: Increased from 8.70% to 8.80%.
4. Six-month MCLR: Increased from 8.95% to 9.05%.
There is a 0.05% rise for loans tied to the one-year MCLR, going from 9.10% to 9.15%. The MCLR for loans with terms of one and two years has also increased by 0.05%, bringing it to 9.20%.
HDFC Bank's revised base rate is now 9.20%, effective from June 16th, and the benchmark PLR rate stands at 17.70%.
This increase in MCLR rates impacts loans because MCLR, introduced by the Reserve Bank of India in 2016, serves as the internal benchmark for banks providing credit and home loans under a floating interest rate system. As MCLR rises, the cost of borrowing for customers increases, which is why HDFC Bank has implemented these changes.
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