New Delhi: HDFC Bank has given a big blow to its borrowers by announcing an increase in loan interest rates. The bank has increased the benchmark marginal cost of funds based lending rates (MCLR) by up to 15 basis points on select tenors. In such a situation, the EMI of all types of floating loans including home loan, personal loan and auto loan will increase.

Several factors are taken into account while deciding MCLR which include deposit rate, repo rate, operating cost and cost of maintaining cash reserve ratio. The change in the repo rate affects the MCLR rate. The change in MCLR affects the interest rate of the loan, which leads to an increase in the EMI of the borrower. According to HDFC Bank’s website, the new MCLR rates are coming into effect from July 7, 2023.

HDFC Bank MCLR Latest Rates

  • HDFC Bank’s overnight MCLR has been increased by 15 bps from 8.10 per cent to 8.25 per cent.
  • The one month MCLR has been increased by 10 bps from 8.20 per cent to 8.30 per cent.
  • The three-month MCLR has also been increased by 10 basis points to 8.60 per cent from the previous 8.50 per cent.
  • The six-month MCLR increased by 5 bps to 8.90 per cent from 8.85 per cent.
  • For tenors above one year, the MCLR is 9.05 per cent, there is no change in it.

EMI of auto loan, home loan and personal loan will increase

The opposite effect of the increase in MCLR will be seen on the interest rate of all types of loans related to it including home loan, auto loan, personal loan. Existing borrowers will have to pay higher EMIs, while new borrowers will have to avail loans at a higher interest rate.

Rahul Dev

Cricket Jounralist at Newsdesk

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