HDFC Bank, one of India’s leading private banks, has announced a revision in its monetary policy, leading to a surge in loan interest rates across various sectors including home loans, car loans, and personal loans.
Impact of HDFC Bank’s Decision on Borrowers
The recent move by HDFC Bank to hike its Marginal Cost of Lending Rates (MCLR) has resulted in a significant increase in the cost of borrowing for its customers. With a 10 basis point (0.10%) increment in MCLR, all loans associated with the bank will witness a surge in their Equated Monthly Installments (EMIs), as per the information provided on HDFC Bank’s official website.
Revised MCLR Rates
Let’s delve into the revised MCLR rates set by HDFC Bank for different tenures:
- Overnight MCLR: Increased by 10 basis points to 8.90%
- One-month MCLR: Elevated by 10 basis points to 8.95%
- Three-month MCLR: Raised by 10 basis points to 9.10%
- Six-month MCLR: Enhanced by 10 basis points to 9.30%
- One-year MCLR: Climbed by 5 basis points to 9.30%
- Two-year MCLR: Advanced to 9.35%
- Three-year MCLR: Remains unchanged at 9.30%
Implementation Date and Its Ramifications
The revised MCLR rates by HDFC Bank became effective from February 7, 2024. Consequently, all new borrowers availing loans from the bank will be subjected to these heightened interest rates.