HDFC Bank, India’s largest private sector lender, has raised its marginal-cost-based lending rate by 35 basis points across the board. The bank’s rate hike comes ahead of widespread anticipation that the Reserve Bank of India will raise interest rates sharply tomorrow.
After the recent rate hike, the overnight MCLR at HDFC Bank is 7.50 percent, while the one-month MCLR is 7.55 percent, according to the bank’s website. The three-month and six-month MCLRs are both 7.60 percent and 7.70 percent.
The one-year MCLR, which is connected to many consumer loans, will now be 7.85 percent, the two-year MCLR will be 7.95 percent, and the three-year MCLR will be 8.05 percent. As of Tuesday, June 7, 2022, these new rates are in effect.
It is vital to note that an increase in your EMI outgo will only affect you when your loan’s reset date occurs. The bank will increase the interest rate payable on your home loan on the reset date based on the current MCLR. MCLR-based home loans are usually linked to a one-year MCLR rate.
If your house loan is tied to the MCLR rate and the reset date is in August, the bank will increase the interest rate payable on your home loan in August. You will continue to pay your current EMI till then.
This is in contrast to external benchmark-linked-based loans, which have interest rates reviewed and altered at least once every three months.
As a result of the increase, housing, vehicle, personal, and other loans will all be more expensive. For a variety of loans, bank consumers might notice increased equivalent monthly payments.
