Effective September 7, 2023, HDFC Bank, India’s leading private bank, has increased interest rates on select loans, impacting its customers’ finances.
This move sees the Marginal Cost of Lending Rate (MCLR) rise by 0.15%, affecting home loans, car loans, and personal loans.
Latest HDFC Bank MCLR Rates
Following this adjustment, HDFC Bank’s overnight MCLR has risen from 8.35% to 8.50%.
The one-month MCLR has increased from 8.45% to 8.55%, while the three-month MCLR has jumped from 8.70% to 8.80%.
The six-month MCLR has seen a similar 0.10% increase, going from 8.95% to 9.05%.
Impact on Loans
For loans tied to the one-year MCLR, customers will experience a 0.05% increase, pushing it from 9.10% to 9.15%.
Additionally, MCLR rates for one-year and two-year terms have increased from 9.20% to 9.25%.
Other HDFC Bank Rate Updates
HDFC Bank had previously revised its base rate to 9.20% and the benchmark PLR rate to 17.70% on June 16, 2023.
Understanding the Impact
MCLR, introduced in 2016 by India’s Reserve Bank, serves as the internal benchmark for banks offering floating interest rate loans.
As MCLR increases, it directly affects the EMIs on home loans, making bank loans more expensive, as demonstrated by HDFC Bank’s recent adjustment.
