HDFC Bank has raised its Marginal Cost of Funds based Lending Rate (MCLR) by up to 5 basis points on select tenures, effective from today, Tuesday. The new range is now set between 8.65% to 9.30%, marking a significant increase from last October's one-year term rate of 8.20%.
The revised rates for overnight, one-month, three-month, six-month, two-year, and three-year MCLRs stand at 8.65%, 8.70%, 8.90%, 9.15%, 9.25%, and 9.30% respectively. However, the one-year MCLR linked to many consumer loans remains unchanged at 9.20%.
In addition to the MCLR adjustments, the bank also revised its Base Rate to 9.25% and the Benchmark Prime Lending Rate (PLR) to 17.85% per annum, both effective from September 25, 2023.
While these changes reflect a rise in HDFC's lending rates, they remain competitive when compared to other top banks' one-year MCLRs.
The bank's Senior Citizen Care Fixed Deposit (FD), offering a higher interest rate, is also available but only until the end of today.
Under the Reserve Bank of India's lending regime introduced in October 2019, home loan interest rates are linked to selected external benchmarks. Banks have the freedom to charge a spread over these benchmarks and the MCLR undergoes monthly adjustments based on the repo rate and other borrowing rates.
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