HDFC Bank hikes MCLR rates; select EMIs to become costly

The HDFC bank on Monday, hiked its Marginal Cost Based Lending Rate by 5 to 15 basis points on select tenors. This latest hike will affect the EMIs of personal loans and vehicle loans, which fluctuate with the change in the MCLR.

As per HDFC bank, the overnight MCLR will be 7.95%, for one month it is 8.10%, while the three month and six month rates are at 8.40% and 8.80% respectively. Meanwhile, the one-year MCLR that affects all the consumer loans is at 9.05%, two-year rates at 9.10%, and three year MCLR at 9.20%.

This change in the MCLR will be applicable from 8th May. HDFC bank had cut the MCLR by upto 85 basis points for loans of short tenures after the RBI announced a pause in rate hike in April.

As per Business Today, MCLR-linked loans are mostly given to corporate and business establishments. These loans had 46.5 per cent share in outstanding floating rate rupee loans as of September 2022.