HDFC Bank, a private sector lender, has raised its marginal cost of funds-based lending rate (MCLR) on loans of all tenures by 20 basis points (100 basis points = 1%), effective July 7, 2022. This will increase the cost of housing, vehicle, personal, and other loans and borrowers’ equated monthly instalments (EMI) for various types of loans.
The overnight MCLR is now 7.70 percent, up from 7.50 percent previously, according to the HDFC Bank website. The one-month MCLR is 7.75 percent. The three-month and six-month MCLRs are 7.80% and 7.90%, respectively. The one-year MCLR, linked to many consumer loans, has been reduced to 8.05 percent, the two-year MCLR to 8.15 percent, and the three-year MCLR to 8.25 percent.
| Tenor | MCLR in % |
|---|---|
| Overnight | 7.70% |
| 1 Month | 7.75% |
| 3 Month | 7.80% |
| 6 Month | 7.90% |
| 1 Year | 8.50% |
| 2 Year | 8.15% |
| 3 Year | 8.25% |
HDFC Bank raised its MCLR by 35 basis points last month (w.e.f June 7, 2022).
On the reset date, the bank will raise the interest rate on your home loan in accordance with the current MCLR. As a result, if your loan’s reset date is in August and is linked to the MCLR rate, your interest rate will rise in August.