Private lender HDFC Bank has increased its one-year marginal cost of funds-based lending rate by 25 basis points. With the hike in rate that came into effect on January 7, 2023, the new one-year MCLR is now 8.85% as against 8.60%. Â The move by HDFC Bank will significantly increase the number of EMIs for existing customers servicing home loans.
The private lender has also announced similar hikes in other MCLR tenures. While its overnight MCLR now stands at 8.50%, the one-month rate is 8.55%. The bank will charge 8.6% and 8.7% MCLR on three-month and six-month tenures, respectively. HDFC Bank’s two-year MCLR is now 8.95% while its 3-year MCLR is 9.05%. Most existing consumer loans such as home loans and automobile loans are linked with the bank’s one-year MCLR.
Recall here that banks in India have been mandated to link interest rates with external lending benchmarks, and they don’t offer home loans on MCLR since October 1, 2019. Majority of banks in India have switched to repo rate-linked rates.
