HDFC Bank: During the festive period, a setback has been delivered to millions of customers by HDFC Bank, India’s largest private sector bank. All seven MCLR tenures have seen an increase of 5 to 15 basis points in the marginal cost of funds-based lending rate (MCLR). Customers who have home, personal, or car loans tied to HDFC Bank’s MCLR will feel the effect of this move directly in their finances.
Previously, HDFC Bank’s MCLR rates ranged from 7.75% to 8.55%, but these have now risen to between 7.85% and 8.70%. Long-term loans—including those with tenures of 6 months, 1 year, 2 years, and 3 years—have experienced a direct rise of 15 basis points, or 0.15%. The updated rates took effect as of 7th November.
HDFC Bank has increased its MCLR by how many basis points across all tenors?
– 20 to 25 basis points
– 5 to 15 basis points
– 10 to 20 basis points
– 1 to 5 basis points
Will your EMI amount rise straight away?
For borrowers whose floating-rate home, personal, or auto loans are connected to HDFC Bank’s MCLR, the cost of borrowing will definitely go up. However, this does not mean your EMIs will increase from the following month itself. Your EMI payment will only be affected when your loan’s reset date, as outlined in your agreement, is reached.
To illustrate, if your loan is based on a 6-month MCLR, the revised rate will take effect at your loan’s next scheduled reset date. Depending on both the bank’s policies and your particular loan terms, either your monthly EMI will rise, or alternatively, the total loan tenure—and thus the number of EMIs—will be prolonged.