HDFC Bank Increased Rate: Due to the private sector bank HDFC Bank raising its MCLR, loans from the bank have become more expensive. Most bank loans are fixed using the MCLR.
HDFC Bank: Customers who take out loans from HDFC Bank will now pay more for their loans. On all of its loans with varying terms, HDFC Bank has raised the interest rates. This occurred as a result of HDFC Bank raising its loan rates following the Marginal Cost of Lending Rate (MCLR). The EMI of the borrowers from the bank has increased since they took effect on November 7th or yesterday.
What percentage did the bank increase?
On loans with a one-night duration, the MCLR at HDFC Bank has gone up from 7.90 percent to 8.20 percent, according to the bank’s website. The MCLR for the month-long loan has also been lowered to 8.25 percent. In addition, the MCLR for loans between three and six months has gone up from 8.30 to 8.40 percent.
Know the interest rates for loans with terms ranging from one to three years.
The MCLR for loans with a one-year term has increased at HDFC Bank to 8.55 percent. At the same time, the MCLR, which was formerly 8.30 percent for a tenure of two years, will now be 8.65 percent. On loans with a three-year term, the bank raised the MCLR rate from 8.40 percent to 8.75 percent.
Why bank loans would cost more because of the rise in MCLR
Most bank loans have interest rates that are fixed based on a one-year MCLR, and as a result of this hike, all bank loans—including home loans, auto loans, and personal loans—have become more expensive.
Many other banks have similarly increased their MCLR.
Let us tell you that Axis Bank increased its MCLR in October before HDFC Bank did. Before Axis Bank, Federal Bank and Kotak Mahindra Bank also decided to raise their MCLR in October. Customers will now be required to pay higher interest rates for loans like personal, auto, and house loans. The interest rates supplied to the consumer are directly impacted by the growth in MCLR or the marginal cost of lending rates. According to MCLR, the bank determines the loan’s interest rate.
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