Mumbai: The largest private sector bank in the country, HDFC Bank has hiked the marginal-cost based lending rate (MCLR) by 35 basis points. The new rate will be in force from today. The increase in lending rate will increase the cost of EMIs on house and other loans that are dependent on its marginal cost of funds.
After the increase, the overnight MCLR is at 7.50%. The one-month MCLR is 7.55% and the 3-month and 6-month MCLRs are at 7.60% and 7.70%. The 1-year MCLR, which is connected to many consumer loans, will now be 7.85%, the 2-year MCLR will be 7.% and the 3-year MCLR will be 8.05%.
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Marginal Cost of Funds based Lending Rate (MCLR) is the minimum lending rate below which a bank is not permitted to lend. It was introduced in the Indian financial system by the Reserve Bank of India in the year 2016.
HDFC Bank’s tenor-wise MCLRs:
Overnight – 7.50%
1 month – 7.55%
3 month – 7.60%
6 month – 7.70%
1 year – 7.85%
2 year – 7.95%
3 year – 8.05%
MCLR rates have also been raised by several other banks, including State Bank of India (SBI), Bank of Baroda, Axis Bank, and Kotak Mahindra Bank.
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