Loan EMIs to Go up as HDFC Bank Hikes MCLR Across all Tenors

HDFC Bank

HDFC Bank hiked its marginal-cost based lending rate (MCLR) on loans for all tenors by 25 basis points (bps). Making EMIs on home and other loans tied to its marginal cost of funds based lending rate dearer.

The hike has become effective from May 7.

According to the bank’s website, the overnight MCLR stands at 7.15 per cent compared to 6.9 per cent earlier. Similarly, its one year MCLR and 2 year MCLR now stand at 7.50 per cent and 7.60 per cent, respectively. Moreover, the three year MCLR stands at 7.70 per cent.

After a mid-cyclic RBI rate hike, banks began to increase deposit and lending rates.

Public sector lender Bank of Baroda (BoB) raised lending rate on loans including home and car by 40 basis points. The new rates for home loans would between 6.90 to 8.25 per cent linked to the credit score of the borrower.

Also Read| Banks Begin to Raise Lending, Deposit Rates after RBI Rate Hike

Also, private lender ICICI Bank hiked its external benchmark lending rate (EBLR) by 40 basis points or bps to 8.10 per cent with effect from May 4.

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