After SBI, HDFC Bank revises lending rates based on marginal cost

Private sector lender HDFC Bank on Thursday revised lending rates based on marginal cost of funds, a new methodology that will take effect from Friday.

For one year loan, the interest rate will be 9.20 while for two years it is going to be 9.3%, sources said.

The rate of interest will be 9.35% for loan of three years duration.

The base rate or the minimum lending rate of the bank is 9.3%.

Reserve Bank had asked banks to price fixed rate loans of up to three years based on their marginal cost of fund from April 1.

All banks will follow Marginal Cost of Funds based Lending Rate (MCLR) system, a new uniform methodology which will ensure fair interest rates to borrowers as well as to banks from tomorrow.

Currently, most banks decide lending rates based on average cost of funds.