Mumbai: Leading private sector bank in the country, HDFC Bank reduced its marginal cost of funds-based lending rate (MCLR). The MCLR rates were slashed by up to 85 basis points for loans of very short tenors.
The overnight MCLR is reduced by 85 bps to 7.80% while for the one-month tenor the rate was reduced by 70 bps to 7.95%. The rate for the 3-month loans was cut by 40 bps to 8.30% and for 6-month loans by 10 bps to 8.70%. Rates for longer 1-year, 2-year and 3-year tenors were left unchanged at 8.95%, 9.05% and 9.15%, respectively.
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MCLR is the minimum rate of interest banks are allowed to give out loans to its customers. It is a benchmark interest rate and it dictates the lower limit of the interest rate for a loan.
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