Bank loans

HDFC Bank loans are going to get expensive as the lender increases the MCLR. Check the latest rates

HDFC Bank loans are going to get expensive as the lender increases the MCLR. Check the latest rates

New Delhi: Ahead of expectations of a sharp rate hike by the Reserve Bank of India (RBI), India’s largest private lender HDFC Bank on Tuesday announced an increase in its marginal cost of funds-based lending rate (MCLR) on loans of all durations 35 points. The new rates will come into effect from June 7, 2022.

This comes a month after the lender raised its MCLR by 25 basis points on May 7, 2022. With the latest hike, home, auto, personal and other loans are expected to become increasingly expensive. Additionally, this latest increase in MCLR means higher EMIs for HDFC Bank customers across a range of loans.

According to the private lender’s website:

Overnight MCLR is now 7.50%, down from 7.15% previously.

The one-month MCLR is 7.55%.

The three and six month MCLRs are 7.60% and 7.70%.

The one-year MCLR will now be 7.85%.

The two-year MCLR will be 7.95%.

The three-year MCLR will be 8.05%.

It is important for home loan borrowers to note that increasing your EMI expenses will only have an impact when your loan reset date arrives. On the reset date, the bank will increase the interest rate applied to the home loan based on the prevailing MCLR.

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Banks typically link MCLR-based home loans to the one-year MCLR rate. So, if your home loan is tied to the MCLR rate and your home loan reset date is in August, the bank will increase the interest rate charged on your home loan in August.

Meanwhile, Canara Bank also increased the MCLR for six-month and one-year terms. The MCLR for these tenures has been increased to 7.35% from 7.30% and 7.40% from 7.35%, respectively.