Loans, EMIs to get costlier as THIS private lender hikes interest rate - check details

HDFC Bank MCLR 2023: HDFC Bank has hiked the Marginal Cost of Fund Based Lending Rate (MCLR) by 5 basis points across loan tenures. The revised rate came into effect from Tuesday, March 7 2023. The revised MCLR rate of HDFC Bank will now range in between 8.65 per cent to 9.15 per cent. 

The hike in the MCLR will make borrowing costlier. Also, the existing customers' EMIs or loan tenure will increase. 

HDFC Bank MCLR Hike: Rate slab 

According to HDFC Bank official website, for the tenure of overnight and one-month MCLR rate has increased to 8.65 per cent. For the period of three-months the MCLR is hiked to 8.7 per cent. 

Likewise, for six-months the MCLR now stands at 8.8 per cent and for one-year MCLR 8.95 per cent, for two year 9.05 per cent and for tenure of 3 years 9.15 per cent. 

Also Read: Income Tax: What are the 3 deductions under the new tax regime?

HDFC Bank MCLR Hike: Who will be impacted 

MCLR was introduced in April 2016. It refers to the minimum interest rate below which financial institutions can't lend money, except in certain cases. This is applied to home loans, auto loans and personal loans. With increase in MCRL, the EMI (Equated Monthly Installments) on loans gets costlier. 

RBI’s Guidelines on MCLR

-Fixed rate home loans will not be affected by MCLR.

-Deposit balances and other borrowings are considered while computation of marginal cost of funds.

-Banks must publish marginal cost of funds-based lending rates for different tenors.

-MCLR as on the sanction date of the floating rate home loan will stand the same till next reset date.

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