As a result, borrowers will see an increase equated monthly installment ,EMI) for different loan types, which will increase the cost of housing, vehicle, personal and other loans after the loan reset date.
according to
website, the overnight MCLR is now 7.80 per cent, an increase of 10 bps from 7.70 per cent. The one month MCLR is 7.80 per cent. The MCLR for three months and six months will be 7.85 per cent and 7.95 per cent respectively. The one-year MCLR for many consumer loans will now be 8.10 percent, two-year MCLR is 8.20 percent and three-year MCLR will be 8.30 percent.
Last month, HDFC Bank raised the MCLR by 20 basis points (effective July 7, 2022) and by 35 basis points (effective June 7, 2022).
On the reset date, the bank will increase the interest rate on your mortgage as per the current MCLR. So your interest rate will increase in August if the reset date of your loan is in August, and it is linked to the MCLR rate.
RBI hikes repo rate
The Reserve Bank of India in its policy review on Friday increased the primary policy rate repo rate by 50 basis points.
In May, the RBI had increased the repo rate by 40 basis points. RBI increased the repo rate by 50 basis points each time it reviews monetary policy in June and August. The central bank is aggressively raising rates due to rising inflation. Around the last six months, retail inflation has remained consistently over 6%.