Country’s largest private sector bank HDFC Bank hiked its marginal cost based lending rate (MCLR) on loans by 25 basis points (bps) for all tenors. The hike in HDFC Bank’s lending rate will result in marginal cost of EMIs on home and other loans linked to the based lending rate.
According to the HDFC Bank website, following the latest rate cut, it will be overnight MCLR 7.15%, while the one-month MCLR is 7.20%. The MCLR for three months and six months is 7.25% and 7.35% respectively. The one-year MCLR, to which many consumer loans are linked, is now fixed at 7.50%, the two-year MCLR now at 7.60%, while the three-year MCLR has been fixed at 7.70%. According to the HDFC Bank website, these new rates are effective from May 7.
This will make home, car, personal and other loans more expensive. Equated Monthly Installment (EMI) will increase for different categories of loans.
HDFC Bank tenor-wise MCLR with effect from May 7, 2022
overnight-7.15%
1 month-7.20%
3 months-7.25%
6 months-7.35%
1 year-7.50%
2 years-7.60%
3 years-7.70%
After this comes state Bank of India (SBI), Bank of Baroda, Axis Bank and Kotak Mahindra Bank have also announced an increase in their MCLR rates.
Banks have hiked loan rates for the first time in nearly three years.
In a surprise move on May 4, the Reserve Bank of India (RBI) raised the benchmark lending rate by 40 basis points (bps) to 4.40 per cent from the target of 6 per cent to control inflation after an unscheduled MPC meeting. Remains far above. Percentage for the last three months.