HDFC Bank Raises MCLR Rate; Loans, EMIs Get Costlier; Check Details

HDFC Bank, India’s largest private sector lender, has raised its marginal cost of funds-based lending rate (MCLR), effective from December 7, 2022, thus making home, vehicle and personal loans expensive. Its overnight MCLR has risen to 8.30 per cent from 8.20 per cent earlier. The bank’s one-month MCLR has been raised by 5 basis points from 8.25 per cent to 8.30 per cent, while its three-month and six-month MCLRs not stand at 8.35 per cent and 8.45 per cent, respectively. According to HDFC Bank’s website, its benchmark one-year MCLR now stands at 8.60 per cent, the two-year MCLR has been increased to 8.70 per cent, and the three-year MCLR has risen to 8.80 per cent from 8.75 per cent earlier. The RBI replaced the base rate system for determining interest rates with the MCLR system on April 1, 2016. While borrowers who were issued loans before April 1, 2016, are still under the old base rate and benchmark prime lending rate (BPLR) system, they can opt to move to the MCLR rate if they think it is beneficial. In the past one month, various banks including Bank of India, PNB and ICIC Bank have increased their interest rates on loans. State-owned Punjab National Bank (PNB) raised the MCLR by 5 basis points (bps) across all tenures. A hundred basis points is equal to one percentage point. With the latest hike, its benchmark one-year MCLR now stands at 8.10 per cent, compared with 8.05 per cent earlier. Its six-month MCLR has now increased to 7.80 per cent from 7.75 per cent earlier. ICICI Bank has also hiked its MCLR by up to 10 basis points across all tenures. Its overnight and one-month MCLRs have been increased from 8.05 per cent to 8.15 per cent now. Its six-month and one-year MCLRs have also been hiked by 10 bps to 8.35 per cent and 8.40 per cent, respectively. Its three-month MCLR has been increase from 8.25 per cent to 8.35 per cent. In the consecutive fifth hike this year, the RBI’s Monetary Policy Committee on Wednesday raised the repo rate by 35 basis points (bps) to 6.25 per cent with immediate effect, making loans expensive. The policy rate is now at the highest level since August 2018. The RBI has maintained policy stance at ‘withdrawal of accommodation’. The RBI has retained its inflation forecast for the current financial year 2022-23 at 6.7 per cent. The RBI expects to bring CPI inflation down to 5 per cent and 5.4 per cent in Q1FY24 and Q2FY24, respectively. The central bank has lowered FY23 GDP growth forecast to 6.8 per cent from 7 per cent earlier. Read all the Latest Business News here

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Published on : 2022-12-08 07:17:19

Source :news18

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