New Delhi: HDFC Bank has increased its Marginal Cost of Funds-Based Lending Rate (MCLR) across all seven loan tenures, potentially increasing borrowing costs for millions of customers. The country’s largest private sector bank has raised MCLR rates by 5 to 15 basis points, affecting borrowers whose home, personal and car loans are linked to this benchmark.
Before the revision, HDFC Bank’s MCLR rates ranged between 7.75% and 8.55%. Following the latest change, the rates have increased to a range of 7.85% to 8.70%. The revised rates came into effect on November 7.
Longer loan tenures, including six months, one year, two years and three years, have witnessed an increase of 15 basis points, equivalent to 0.15 percentage points.
HDFC Bank Increases MCLR Rates Across All Seven Tenures
The latest revision covers all seven MCLR categories offered by HDFC Bank. Depending on the loan tenure, the interest rate increase ranges from 5 to 15 basis points.
This change could make borrowing more expensive for customers who have opted for loans linked to the bank’s MCLR. Home loan borrowers, personal loan customers and vehicle owners may all be affected, depending on the terms of their respective loan agreements.
The key takeaway is that HDFC Bank has increased its MCLR by 5 to 15 basis points across all seven tenures.
Will Your Home, Car or Personal Loan EMI Increase Immediately?
Although the MCLR revision increases the lending benchmark, borrowers should not assume that their monthly EMI will rise immediately from the next month.
The actual impact depends on the loan reset date mentioned in the agreement between the borrower and the bank. The revised interest rate will generally apply when the loan reaches its next scheduled reset date.
For example, if your home loan is linked to the six-month MCLR, the revised rate will be considered at the next applicable reset date.
After the revision, the bank may adjust the monthly EMI amount or extend the overall repayment period, depending on the loan terms and applicable policies.
What Should HDFC Bank Borrowers Know?
Customers with MCLR-linked floating-rate loans should check their loan agreements and upcoming reset dates to understand how the revised rates may affect their repayments.
The impact will vary depending on the outstanding loan amount, remaining repayment period and applicable interest rate. Borrowers should review their updated loan details to understand whether their monthly instalment or total loan tenure is likely to change.
Disclaimer: This article is intended for general informational purposes and is based on the reported changes in HDFC Bank’s MCLR rates. The actual impact on loan interest rates, EMIs and repayment periods may vary according to individual loan agreements and reset dates. Readers should confirm the applicable terms directly with their bank before making financial decisions.