HDFC Bank MCLR Rates 2024 Hikes from February, 8

Many banks had been providing relief to customers for a while as the Reserve Bank of India (RBI) exercised restraint. However, HDFC Bank, the largest private sector bank in the country, has taken a tough decision to increase its Marginal Cost of Funds Based Lending Rates (MCLR) starting from February 8, 2024. This decision has come as a shock to customers as it will lead to an increase in interest rates on some selected tenures.

After the interest rate hike, HDFC Bank’s MCLR rates have increased to 9.35% from 8.90%. Overnight MCLR has increased from 8.80% to 8.90%. One month MCLR has increased from 8.85% to 8.95%. The 3-month MCLR rate has increased to 9.10% from 9%. The 6-month MCLR has reached 9.30%, and the MCLR for the year has increased by 5 basis points to 9.30%.

HDFC Bank MCLR Rates 2024
HDFC Bank MCLR Rates 2024

It can be said that most types of consumer loans depend on the annual MCLR. Loans are given based on this rate. The two-year MCLR is currently 9.35%, while the three-year MCLR is also at the same percentage. The base rate for other loan rates in HDFC Bank is 9.25%, and the Benchmark PLR continues to be -17.85%.

Banks consider other lending rates, including the repo rate, to revise the MCLR rate every month. MCLR is the minimum interest rate offered by banks to a customer on a loan. It is not possible to give a loan for less than that amount. The Reserve Bank has brought this policy with the intention that all banks should follow the same method. Almost every bank also revises these MCLR rates every month depending on the decision taken by RBI on repo rates.

RBI has kept the repo rate stable at 6.50% for the last 5 rounds. It had increased by nearly 250 basis points in the previous year. In this background, even the banks could not increase the loan interest rates.

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