HDFC bank: Loans now more expensive; rates on your EMI to go up

HDFC Bank: Customers who borrow money from HDFC Bank will now pay extra interest on their loans. All-duration loans from HDFC Bank now have higher interest rates. This resulted from an increase in loan rates by HDFC Bank based on the Marginal Cost of Lending Rate (MCLR). These took effect on November 7th, which was yesterday, and as a result, the bank's EMI for debtors has increased.

How much rate did the bank increase:

On loans with a one-night tenure, the bank's MCLR has gone up from 7.90 per cent to 8.20 per cent, according to the HDFC Bank website. The MCLR for the month-long loan has also been lowered to 8.25 per cent. In addition, the MCLR for loans with terms of three to six months has gone up from 8.30 per cent to 8.40 per cent.

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The MCLR for loans with a one-year term has increased at HDFC Bank to 8.55 per cent. At the same time, the MCLR, which was formerly 8.30 per cent for a tenure of two years, will now be 8.65 per cent. On loans with a three-year term, the bank raised the MCLR rate from 8.40 per cent to 8.75 per cent.

Why bank loans would cost more because of the rise in MCLR:

The majority of banks base their loan interest rates on one-year MCLR, making all of their loans, including personal loans, vehicle loans, and home loans, more expensive as a result.