HDFC Bank has increased the benchmark marginal cost of funds-based lending rates (MCLR) by up to 5 basis points on select tenures. The new rates are effective from March 7, 2024, according to the HDFC Bank website.
Latest HDFC Bank MCLR
HDFC Bank’s MCLR ranges between 8.95 per cent and 9.35 per cent. The overnight MCLR has been raised by 5 bps from 8.90 per cent to 8.95 per cent. The one-month MCLR of HDFC Bank is unchanged at 8.95 per cent. The three-month MCLR will be raised by 5 bps is 9.15 per cent from 9.10 per cent. The six-month MCLR is unchanged at 9.30%. The one-year MCLR, which is linked to many consumer loans is unchanged at 9.30 per cent. The 3-year MCLR is kept unchanged at 9.35 per cent.
Home loan EMIs may fall 3.5% this year despite RBI MPC holding repo rate
| Tenor | MCLR |
| Overnight | 8.95% |
| 1 Month | 8.95% |
| 3 Month | 9.15% |
| 6 Month | 9.30% |
| 1 Year | 9.30% |
| 2 Year | 9.35% |
| 3 Year | 9.35% |
HDFC Bank other lending rates
HDFC Bank benchmark PLR is at 17.95% per annum with effect from March 11, 2024. The revised base rate will be 9.45% and will be effective from March 11, 2024.
What is MCLR
The Marginal Cost of the Fund-Based Lending Rate or the MCLR is the minimum interest rate a financial institution needs to charge for a specific loan. It dictates the lower limit of the interest rate for a loan. This rate limit is set in stone for borrowers unless specified otherwise by the Reserve Bank of India.
Comparison of MCLR of top banks – March 2024
| Bank name | One year MCLR |
| ICICI Bank | 9.10% |
| PNB | 8.80% |
| BOI | 8.85% |
| HDFC Bank | 9.30% |
Impact on home loan EMIs under different benchmark regimes
The benchmark regime under which borrowers are repaying their loans usually determines how the interest rate rise is transferred to borrowers. Your EMI will increase at the fastest pace and match the increase in the repo rate if your house loan is tied to the repo rate and was obtained under the External Benchmark Linked pace (EBLR). However, the transmission in base rate linked loan is relatively slower while it is slowest in case of MCLR linked home loans.
