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HDFC Bank MCLR Rate Hike: Customers of India’s largest private sector lender HDFC Bank are likely to have to shell out more money as interest if they have taken any loan from the lender. The HDFC Bank has hiked its s increased its marginal cost of lending rate, or MCLR across all tenors, according to its website. The new HDFC Bank MCLR rates have come into effect from July 7, Thursday. The HDFC Bank MCLR rate hike comes at a time when the Reserve Bank of India’s Monetary Policy Committee has increased its repo rates by 50 basis points during its MPC meet last month.

The HDFC Bank MCLR rate hike will mean that loan interests for new and existing borrowers are set to increase, including equated monthly installments (EMIs) for home loan, vehicle loan and any other loan related to marginal cost. HDFC Bank MCLR rates for overnight, one month and three months have been hiked to 7.70 per cent, 7.75 per cent and 7.80 per cent, hiked by 20 bps across all the tenures. For tenures of six months and one year, the HDFC Bank MCLR rates are 7.90 per cent and 8.05 per cent, respectively, also hiked by 20 bps. HDFC Bank MCLR has been hiked by 20 bps to 8.15 per cent and 8.25 per cent for two and three years’ tenures respectively.

Here are the tenor-wise MCLR effective from July 7, 2022, as per the HDFC Bank website:

Over night: Old rate — 7.50 per cent; New rate —  7.70 per cent

One Month: Old rate — 7.55 per cent; New rate — 7.75 per cent

Three Month: Old rate — 7.60 per cent; New rate — 7.80 per cent

Six Month: Old rate — 7.70 per cent; New rate 7.90 per cent

One Year: Old rate — 7.85 per cent; New rate 8.05 per cent

Two Years: Old rate — 7.95 per cent; New rate 8.15 per cent

Three Years: Old rate — 8.05 per cent; New rate 8.25 per cent

Will Home Loan EMIs, Car Loan EMIs Increase after HDFC Bank MCLR Hike?

As a result of the HDFC Bank MCLR rate hike, housing, vehicles and personal loans are going to get more expensive as the EMIs will increase. However, existing home loan borrowers must note that the EMI will be revised only when the reset date of their loans arrive. The lender will increase or revise the interest rate on the borrowers’ home loans on the basis of prevailing MCLR when the reset date arrives. This means that if a person’s home loan is based on MCLR, and the reset date is in September, then he or she will have to pay the hiked EMIs from September. Till then, the borrower will pay on basis of their existing rates.

“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,” said the HDFC Bank on its website. MCLR is dependent on the changes made to the RBI Repo rate.

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