MCLR rates are the minimum interest rate below which the bank is not allowed to give a loan. That is, we can say that this is the minimum interest rate for the bank to give a loan.
MCLR Rate Hike: Taking a loan from HDFC Bank will now cost you more. This largest private sector bank in the country has changed its Marginal Cost of Lending Rates (MCLR). The bank has increased the MCLR for a period of 3 months. The bank has increased it by 5 basis points i.e. 0.05 percent. HDFC Bank’s MCLR is between 9.10 to 9.45 percent. The new rate has come into effect from Saturday. The bank has maintained the old rate for all other periods. The bank’s overnight MCLR is at 9.10 percent and 1 month MCLR is at 9.15 percent.
Earlier last month, State Bank of India i.e. SBI had increased the MCLR by 0.10 percent. After this increase, the bank’s MCLR based interest rates are between 8.20 percent and 9.1 percent. At the same time, the bank had increased the overnight MCLR to 8.20 percent.
How much is the 3-month MCLR?
HDFC Bank’s 3-month MCLR rate has now increased from 9.25% to 9.30%. The bank’s 6-month MCLR is at 9.40%. Apart from this, the MCLR rate for all long periods is at 9.45%. MCLR helps the bank to fix interest rates on all types of loans including home loans, business loans and personal loans.
What is MCLR?
MCLR i.e. Marginal Cost of Lending Rates is the minimum interest rate below which the bank is not allowed to give a loan. That is, it can be said that this is the minimum interest rate for the bank to give a loan. The Reserve Bank of India implemented MCLR on 1 April 2016 to fix interest rates for loans. The decrease or increase in MCLR has a direct impact on the customers taking loans. Due to the increase in it, now the customers will have to pay more EMI on the loan than before.
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