EMIs For New, Existing HDFC Home Loan, Vehicle Loan, Personal Loan Will Increase As This Lending Rate Hiked
Only one day ahead of the Reserve Bank of India raising its key lending rate, the repo rate by 50 basis points on June 8, the country’s largest private sector lender HDFC Bank increased its marginal cost of lending rate (MCLR) by as much as 35 basis points.
In simple words, doing so will lead to higher interest rates charged on different kinds of loans availed by existing and new customers from the private lender.
In only about a month’s time, HDFC has raised its MCLR rates by as high as 60 basis points, and as 100 basis points means 1%, after the latest MCLR hike, the loan EMIs will jump by up to 35%.
New MCLR Rates Effective From June 7, 2022
The central bank RBI hiked repo rate by 50 bps on Wednesday, and only a day ahead, HDFC, the largest private sector lender in India raised its marginal cost of lending rate for the second time in under a month, to upto 35 basis points across all tenors.
On May 7, 2022, the banking major had hiked its MCLR rates by 25 basis points.
Due to the MCLR hike, the interest rate on all kinds of loans offered by the bank, including housing, auto and personal loans, to its new and existing customers will increase.
Here are the revised tenor-wise MCLR, already under effective, starting May 7:
- Over night: 7.5% (Old rate: 7.15%),
- One Month: 7.55% (Old rate: 7.2%),
- Three Month: 7.6% (Old rate: 7.25%),
- Six Month: 7.7% (Old rate: 7.35%),
- One Year: 7.85% (Old rate: 7.5%),
- Two Years: 7.95% (Old rate: 7.6%),
- Three Years: 8.05% (Old rate: 7.7%)
“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,” stated HDFC Bank.