HDFC Bank – Good news for HDFC Bank customers. The country’s largest private sector bank, HDFC Bank, has given a gift to its millions of customers before Diwali. HDFC Bank has reduced loan interest rates. The bank has reduced MCLR by 0.15 percent. This reduction has been done over a period of time. MCLR is directly linked to loan rates. Banks cannot offer any loan at rates lower than MCLR. If the bank reduces MCLR, loan rates will automatically decrease. Customers will directly benefit from this.
HDFC Bank reduced MCLR
HDFC Bank has revised its overnight, one-month, three-month, three-year, and three-year MCLRs. The bank has reduced rates by 0.05% to 0.15%. The reduction in MCLR will reduce EMIs on home, car, and personal loans.
What are the new MCLR rates?
According to the HDFC Bank website, the new MCLR rates are as follows:
Overnight MCLR: Reduced from 8.55% to 8.45%
1-month MCLR: Reduced from 8.55% to 8.40%
3-month MCLR: Reduced from 8.60% to 8.45%
6-month MCLR: Reduced from 8.65% to 8.55%
1-year MCLR: Reduced from 8.65% to 8.55%
2-year MCLR: Reduced from 8.70% to 8.60%
3-year MCLR: Reduced from 8.75% to 8.65%
What will happen if MCLR decreases?
Whenever a bank changes its MCLR (Marginal Cost of Funds Based Lending Rate), it directly impacts loans with floating interest rates, such as home loans, personal loans, and car loans. If the bank increases the MCLR, your EMI, or the EMI term, increases because the interest rate increases.
How is MCLR decided?
To determine the MCLR, banks use interest rates on deposits based on the repo rate, operating costs, and the CRR (cash reserve ratio). When the RBI changes the repo rate, it also affects the MCLR.