HDFC Bank has increased the benchmark marginal cost of funds-based lending rates (MCLR) by up to 15 basis points. The new rates are effective from June 7, 2023, according to the HDFC Bank website.
Latest MCLR
The bank’s overnight MCLR is raised by 15 bps to 8.10%The one-month MCLR of HDFC Bank has increased by 10 bps to 8.20%. The three-month MCLR is also at 8.50%, up 10 basis points from the previous 8.40%.
The six-month MCLR, however, only increased by a far more modest 5 bps from the prior 8.80% to 8.85%. However, MCLRs for tenures longer than one year remain unchanged at
In May, HDFC Bank has raised Marginal Cost Based Lending Rate (MCLR) by up to 15 basis points (bps) on select tenors.
There will be no impact on borrowers of HDFC home loans as a result of this MCLR lowering because the majority of mortgages are obtained through HDFC Ltd, HDFC’s parent business. These rates will only apply to older borrowers of personal loans and car loans (floating rate loans) and other loans that linked to the MCLR.
MCLR
The Marginal Cost of the Fund-Based Lending Rate or the MCLR is the minimum interest rate a financial institution needs to charge for a specific loan. It dictates the lower limit of the interest rate for a loan. This rate limit is set in stone for borrowers unless specified otherwise by the Reserve Bank of India.
Features of MCLR
The basis of the rate depends on the marginal cost of funds.
The deposit rates, repo rates, operating costs and the cost of maintaining the cash reserve ratio determine the MCLR rate.
MCLR is dependent on the changes made to the Repo rate.
Lenders can change the Base rate every quarter.
Other bank MCLR
ICICI Bank, Bank of India PNB are few banks that have revised MCLR in the month of June.
Source By: economictimes
