HDFC Bank has recently announced a significant change in its Marginal Cost of Funds Based Lending Rates (MCLR), effective from January 8, 2023. This move is expected to have a notable impact on customers with loans from HDFC Bank.
Key Highlights
1. HDFC Bank’s MCLR Rates: The current MCLR rates at HDFC Bank now range from 8.80% to 9.30%, reflecting an increase from the previous rates.
2. Specific Increases:
- Overnight MCLR: Increased by 10 basis points from 8.80% to 8.90%.
- One-month MCLR: Raised by 5 basis points from 8.75% to 8.80%.
- Three-month MCLR: Increased from 8.95% to 9%.
- Six-month MCLR: Stepped up to 9.20%.
- One-year MCLR: Rose by 5 basis points from 9.20% to 9.25%. Notably, this rate is crucial as most loans are linked to the one-year MCLR.
- Three-year MCLR: Remains unchanged at 9.30%.
Other Banks Also Increase Loan Rates: HDFC Bank is not alone in adjusting its loan interest rates. Several other major banks have made similar moves recently.
- State Bank of India (SBI): Raised the interest rate for customers with high credit scores to 8.85%.
- Bank of Baroda: Increased the minimum interest rate on auto loans to 8.8%.
- Union Bank: Raised the interest rates on selected tenure personal and auto loans.
- IDFC First Bank: Elevated the starting interest rate on personal loans to 10.75%.
- Bank of Maharashtra: In contrast, reduced the interest rate on home loans to 8.35%.
In Short About HDFC New MCLR: The adjustment in MCLR rates by HDFC Bank, coupled with similar actions by other major banks, points towards a prevailing trend of rising loan costs. It is imperative for customers with existing or prospective loans to carefully review these changes, as they could have a significant impact on their loan repayment amounts. Staying informed about such market dynamics is crucial for making sound financial decisions.
