HDFC Bank has increased the benchmark marginal cost of funds-based lending rates (MCLR) by up to 10 basis points on select tenures. The new rates are effective from October 7, 2023, according to the HDFC Bank website.
The bank has also hiked base rate by 5 bps and benchmark PLR by 15 bps. These rates are effective from September 25, 2023.
The bank’s overnight MCLR as been raised and now bank offers loans between 8.55 per cent from 9.25 per cent. The over night MCLR is raised by 10 bps from 8.50 pre cent to 8.60 per cent. The one-month MCLR of HDFC Bank has increased by 10 bps to 8.65per cent from 8.55 per cent. The three-month MCLR will be at 8.85 per cent, up by 5 basis points from the previous 8.80per cent. The six-month MCLR, however, was only increased to 9.10 from 9.05 per cent. The one-year MCLR, which is linked to many consumer loans, was hiked by 5 bps to 9.20 per cent from 9.15 per cent. While 1 year and 2 year MCLR was kept unchanged at 9.20 per cent and 9.25 per cent, respectively.
| Tenor | MCLR |
| Overnight | 8.60% |
| 1 Month | 8.65% |
| 3 Month | 8.85% |
| 6 Month | 9.10% |
| 1 Year | 9.20% |
| 2 Year | 9.20% |
| 3 Year | 9.25% |
The revised Base Rate will be 9.25% and will be effective from September 25, 2023. Earlier, Base Rate was 9.20% effective from June 16, 2023.The Benchmark PLR – 17.85% p.a. with effect from September 25. Earlier, Benchmark PLR was at 17.70% p.a. with effect from June 16, 2023.
The banks were required to link the interest rates charged on home loans to any of the selected external benchmarks under the new lending regime that the RBI introduced in October 2019. A spread over and above the external benchmark was permitted for the banks to charge. The banks are free to charge a spread over the external benchmark.
ICICI Bank, Yes Bank, and Punjab National Bank (PNB) have revised their marginal cost-based lending rates (MCLR) on loans of various maturities. According to the bank websites, the revised MCLRs came into effect from October 1, 2023.
Also read: Loan interest rates for October 2023: ICICI Bank, PNB, Yes Bank revise these loan interest rates
| Banks | One year MCLR (October) |
| HDFC Bank | 9.20% |
| ICICI Bank | 8.95% |
| PNB | 8.65% |
| Yes Bank | 10.25% |
| Bank of India | 8.70% |
