Latest MCLR in December 2024: HDFC Bank, PNB, Canara Bank revises lending rates
Banks Revise MCLR Rates: In December 2024, several banks have revised their Marginal Cost of Lending Rates (MCLR), which directly impact various loan rates like home loans and personal loans.
What is MCLR?
MCLR (Marginal Cost of Funds based Lending Rate) is the minimum interest rate at which banks can lend to customers, replacing the previous base rate system. Here's a look at the changes in MCLR by 3 prominent banks this month:
HDFC Bank Loan Rates
As per HDFC Bank's website, the overnight MCLR has been increased by 5 basis points, moving from 9.15 per cent to 9.20 per cent. However, the MCLR for other tenures remains unchanged.
HDFC Bank Loan Rates
The 1-month MCLR is now 9.20 per cent, while the 3-month MCLR is 9.30 per cent. The 6-month, 1-year, and 2-year MCLRs are all 9.45 per cent, and the 3-year MCLR is 9.50 per cent.
PNB Loan Rates
Punjab National Bank (PNB) has revised the MCLR for all periods by 5 basis points. The overnight MCLR is now 8.35 per cent, while the 1-month MCLR stands at 8.45 per cent.
PNB Loan Rates
The 3-month MCLR is 8.65 per cent, and the 1-year MCLR is 9.00 per cent. The 3-year MCLR has been increased to 9.30 per cent. These changes were effective from December 1.
Canara Bank Loan Rates
Canara Bank has increased the MCLR for all tenures by 5 basis points. The overnight MCLR is now 8.35 per cent, while the 1-month MCLR is 8.45 per cent. The 3-month MCLR remains at 8.55 per cent, and the 6-month MCLR is 8.90 per cent.
Canara Bank Loan Rates
The 1-year MCLR has been adjusted to 9.10 per cent, with the 2-year MCLR now at 9.35 per cent. These rates were implemented on December 12.
What is Repo Rate?
The Repo Rate is the interest rate at which the central bank (like the Reserve Bank of India) lends short-term funds to commercial banks. When the repo rate increases, it becomes costlier for banks to borrow, leading to higher lending rates for customers.
How repo rate is connected to MCLR?
The MCLR is the minimum rate at which banks lend to borrowers, based on their cost of funds. MCLR is influenced by the repo rate, as a higher repo rate increases banks' borrowing costs, which in turn raises the MCLR, making loans more expensive for consumers.