HDFC Bank has increased the benchmark marginal cost of funds-based lending rates (MCLR) by up to 15 basis points on select tenures. The new rates are effective from September 7, 2023, according to the HDFC Bank website.The bank’s overnight MCLR as been raised by 15 bps to 8.50per cent from 8.35 per cent. The one-month MCLR of HDFC Bank has increased by 10 bps to 8.55per cent from 8.45 per cent. The three-month MCLR will be at 8.80 per cent, up by 10 basis points from the previous 8.70 per cent. The six-month MCLR, however, was only increased to 9.05 from 8.95. The one year MCLR, which is linked to many consumer loans, was hiked by 5 bps from 9.10 per cent to 9.15 per cent. While 1 year and 2 year MCLR was hiked by 5 bps to 9.20 per cent and 9.25 per cent, respectively.
| Tenor | MCLR |
| Overnight | 8.50% |
| 1 Month | 8.55% |
| 3 Month | 8.80% |
| 6 Month | 9.05% |
| 1 Year | 9.15% |
| 2 Year | 9.20% |
| 3 Year | 9.25% |
Other HDFC rates
The revised Base Rate will be 9.20% and will be effective from June 16, 2023. Benchmark PLR – 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.
Latest RBI rule on floating rate interest rate
Under the external benchmark based lending rate (EBLR) system, the Reserve Bank of India (RBI) has instructed the banks to be transparent while changing the interest rate and monthly installments of floating rate house loans. Additionally, the banking regulator has requested that banks have a more open pricing structure for their floating rate interest rates. Additionally, the central bank has requested that the lender give EBLR-eligible borrowers the option to switch to fixed-rate house loans at any time.
