HDFC Bank has today increased the marginal cost of funds based lending rate (MCLR) for all tenors by 10 basis points (bps) for borrowers with effect from September 7, 2022. One basis point is one hundredth of a percentage point.
Increase in MCLR rate means increase in loan interest for new and existing borrowers, including Equated Monthly Installment (EMI) for home loan, vehicle loan and any other loan related to marginal cost.
According to information posted on the bank’s website, under the revised rates, effective from today, HDFC Bank’s one-year MCLR has increased to 8.2 per cent, while the overnight MCLR has increased to 7.9 per cent. The one-year MCLR is considered important from the point of view of retail loans, as bank’s long-term loans such as home loans are linked to this rate.
For the tenures of one month, three months and six months, the MCLR will be 7.90%, 7.95% and 8.05% respectively.
last month, HDFC bank The marginal cost of funds-based lending rates had increased by 5-10 basis points over different periods.
The MCLR came in April 2016, giving banks a formula to calculate their cost of funding and then review their proposals monthly over different periods. Each bank calculates its MCLR by taking into account factors such as its incremental cost of raising funds (eg, through deposits) and operating expenses, among other factors.
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