HDFC Bank raises home loan rates ahead of the RBI meeting; MCLR is adjusted, impacting EMIs for borrowers.
Home loan: As the Reserve Bank of India's monetary policy meeting approaches from August 8 to 10, HDFC Bank has surprised its customers by raising home loan interest rates. This move means that individuals taking out home loans will now face higher EMIs compared to before. The private sector bank has increased the Marginal Cost of Funds Based Lending Rate (MCLR) by 15 basis points for specific tenures. This revised rate has been effective since August 7, 2023.
HDFC Bank has made adjustments across various MCLR tenures. The overnight MCLR has risen from 8.25 percent to 8.35 percent, reflecting an increase of 10 basis points. The one-month MCLR has seen a 15 basis points jump, moving from 8.30 percent to 8.45 percent. Similarly, the three-month MCLR has climbed by 10 basis points to reach 8.70 percent from its previous value of 8.60 percent. The six-month MCLR has seen a smaller increase of 5 basis points, moving from 8.90 percent to 8.95 percent.
No alterations have been made to the MCLR for tenures exceeding one year. For instance, the two-year interest rate has been set at 9.15 percent, while the three-year interest rate stands at 9.20 percent. Meanwhile, the MCLR rate for a one-year tenure remains at 9.10 percent.
HDFC Bank explains that the Marginal Cost of Funds Based Lending Rate (MCLR) serves as the minimum interest rate below which the bank is unable to lend money. It determines the interest rate for loans and acts as a benchmark for fixing borrowing costs. Changes in the repo rate by the Reserve Bank of India lead to corresponding adjustments in the MCLR rate.
The Reserve Bank of India's three-day monetary policy meeting, spanning from August 8 to 10, is underway. Following its conclusion on August 10, RBI Governor Shaktikanta Das will announce the decision on the repo rate around 10 am. This announcement holds implications for the broader economic landscape.
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