HDFC Bank cuts MCLR by 20 bps: Check new rates here

HDFC Bank has cut its MCLR by 20 bps. The rate cut will be applicable across all tenors with effect from today (July 7). The move will impact those home loan borrowers who have floating home loan rates. The reduction comes in line with the repo rate cuts announced by the Reserve Bank of India (RBI) to provide banks with liquidity to encourage them to lend to borrowers at cheaper rates and push economic growth.

HDFC Bank, the country's top private-sector lender reported a loan growth of 21% as of June 30, compared to a year earlier.

Latest HDFC Bank MCLR rates

Overnight 7.10%

1 month 7.15%

3 month 7.20%

6 month 7.30%

1 year 7.45%

2 year 7.55%

3 year 7.65%

HDFC Bank is not the first to reduce its MCLR. Several other banks have taken similar decisions in the recent past. State-run Canara Bank and Bank of Maharashtra on Monday announced reduction in their marginal cost of funds based lending rates (MCLR) by 10 basis points and 20 basis points, respectively, across all tenors, effective July 7.

Meanwhile, Bengaluru-based Canara Bank had also cut its one-year MCLR to 7.55 per cent from 7.65 per cent earlier. Overnight and one-month lending rates have been cut by 10 basis points to 7.20 per cent each. Three months MCLR rate has been revised to 7.45 per cent from 7.55 per cent.

The State Bank of India had decided to cut the rates last month. SBI had reduced MCLR by 25 bps across all tenors, with effect from June 10, 2020. SBI's one-year MCLR, against which home loans are typically benchmarked, has come down to 7% per annum.