according to HDFC bank website, the overnight MCLR is now 7.90 per cent. The one month MCLR is 7.90 per cent. The MCLR for three months and six months will be 7.95 per cent and 8.05 per cent, respectively. The one-year MCLR for many consumer loans will now be 8.20 percent, two-year MCLR is 8.30 percent and three-year MCLR will be 8.40 percent.
Source: HDFC Bank website
In September, the bank raised its marginal cost-based lending rate (MCLR) on all maturity loans by 10 basis points (100 basis points = 1%).
Previous MCLR hiked by HDFC Bank
In September, HDFC Bank had increased the MCLR by 10 basis points.
In August, HDFC Bank had increased the MCLR by 10 basis points.
In July, HDFC Bank had increased the MCLR by 20 basis points.
RBI hikes repo rate
Reserve’s Monetary Policy Committee (MPC) bank of india During its policy meeting on September 30, 2022, it decided to increase the repo rate—the interest rate at which the country’s central bank lends money to commercial banks—from 50 basis points (bps) to 5.90 percent.
After RBI hike, including banks Yes Bank, Canara Bankbank of india, Punjab National Bank They also increased their lending rates.
What is MCLR?
The minimum interest rate charged by the bank on the loan is called MCLR (Marginal Cost of Funds Based Lending Rate). Under the MCLR regime, banks are allowed to provide any type of loan at a fixed or floating rate of interest.
Should you convert from base rate to MCLR rate?
According to HDFC Bank’s website, “The Reserve Bank of India (RBI) has made it clear that banks should allow base rate borrowers to switch to MCLR when the policy rate changes. However, before taking a decision, you should seek professional guidance. Financial advisors can provide you with up-to-date information and guide you through the transfer process.”