HDFC Bank hikes MCLR by 35 bps; loans, EMIs to go up

After the latest MCLR hike, loan EMIs may increase by 35 per cent

FPJ Web DeskUpdated: Tuesday, June 07, 2022, 02:25 PM IST
article-image
The HDFC Bank MCLR rate hike as the Reserve Bank of India’s Monetary Policy Committee has started its meetings and will announce the policy tomorrow / Representative image |

HDFC Bank, the country's largest private sector lender, has raised its marginal cost of lending rate (MCLR) across all tenors by 35 basis points (bps).

A 100 basis points equals 1 per cent. After the latest HDFC Bank MCLR hike, loan EMIs may increase by 35 per cent.

The MCLR refers to the minimum interest rate below which financial institutions can't lend, except in certain cases.

The HDFC Bank MCLR rate hike was announced as the Reserve Bank of India’s Monetary Policy Committee has started its meetings and will announce the policy tomorrow. A rate hike is expected amid rising inflation.

The revision in MCLR hike will impact interest on loans for new and existing borrowers which are set to increase, including equated monthly installments (EMIs) for home loan, vehicle loan and any other loan related to marginal cost.

According to the HDFC Bank's website, after the latest rate increase, its overnight MCLR stands at 7.50 percent, while one-month MCLR is 7.55 percent. Three- month and six-month MCLR stand at 7.60 percent and 7.70 percent respectively.

The one-year MCLR, on which a bulk of consumer loans are pegged, will be 7.85 percent after the newest review as against 7.50 percent earlier. The overnight MCLR will be 7.50 percent against 7.15 percent, while the three-year MCLR will be 8.05 percent compared to 7.70 percent. It can be noted that the rate hikes come at a time when credit growth is not very high and banks are keen to accelerate on the same. There have been hikes in deposit rates as well, which have preceded the lending rate hikes, along with the change in the policy environment.

On May 7, HDFC Bank had increased its MCLR rates by 25 basis points, after the RBI had hiked its repo rates by 40 basis points.

(To receive our E-paper on whatsapp daily, please click here. To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

RECENT STORIES

Nandurbar resident held for posting video of Jaipur murder

Nandurbar resident held for posting video of Jaipur murder

Mumbai Metropolitan Region records highest sales of approx 25,785 units in Q2 2022

Mumbai Metropolitan Region records highest sales of approx 25,785 units in Q2 2022

Uddhav Thackeray has lost fighting spirit: Former CM Prithviraj Chavan

Uddhav Thackeray has lost fighting spirit: Former CM Prithviraj Chavan

Daily Horoscope for Friday, July 1, 2022, for all zodiac signs by astrologer Vinayak Vishwas...

Daily Horoscope for Friday, July 1, 2022, for all zodiac signs by astrologer Vinayak Vishwas...

Mumbai cruise drugs case: Aryan Khan seeks passport back as exonerated in drugs case

Mumbai cruise drugs case: Aryan Khan seeks passport back as exonerated in drugs case