India’s biggest private sector bank, HDFC, has surprised its customers just before Diwali.
HDFC has raised the MCLR rates on certain loan tenures by 5 basis points, which is equivalent to 0.05 percent.
This increase in the bank’s MCLR will lead to higher EMIs for all types of variable-rate loans, including home loans, personal loans, and auto loans.
In other words, customers may experience a financial impact before Diwali, with increased EMIs for their home and car loans. These new rates will take effect from November 7, 2023.
HDFC Bank New MCLR Rates
HDFC Bank has raised its overnight MCLR by 10 basis points, going from 8.60 percent to 8.65 percent.
The one-month MCLR has gone up by 15 basis points, moving from 8.65 percent to 8.70 percent.
The three-month MCLR has gone up by 10 basis points, reaching 8.90 percent from its previous rate of 8.85 percent.
The six-month MCLR has gone up by 5 basis points, now standing at 9.15 percent, up from 9.10 percent.
The MCLR for a duration of more than one year is now 9.20 percent, which is a 0.05 percent increase from its previous rate of 9.15 percent.
The MCLR for a duration of more than 2 years remains at 9.20 percent, with no changes made.
The MCLR for a period of more than 3 years has been raised from 9.25 percent to 9.30 percent.
The new rates have become effective starting from November 7, 2023.
Several factors are considered when determining the MCLR, such as deposit rates, repo rates, operational costs, and the cost of maintaining cash reserves.
Changes in the repo rate impact the MCLR rate, which, in turn, affects the interest rate on loans, leading to an increase in borrowers’ EMIs.
According to the HDFC Bank website, the new MCLR rates have become effective as of November 7, 2023.
EMI for auto loans, home loans, and personal loans will go up
The rise in MCLR will impact the interest rates on various types of loans, including home loans, auto loans, and personal loans.
Loan customers will need to pay higher EMIs compared to before. Those seeking new loans will face higher loan costs.
The bank has surprised customers with this change just before Diwali.
