HDFC Bank increased MCLR, EMI burden will increase on customers
HDFC Bank hike MCLR: Before the announcement of the decisions of the Monetary Policy Committee of RBI, HDFC Bank increased the MCLR by 0.15 percent. MCLR works as a benchmark for any bank to determine the interest on the loan. Changes in this have a direct effect on the customers.
The Marginal Cost of Fund Based Lending Rates (MCLR) has been increased by 15 basis points from the private sector HDFC Bank. However, there has been no change in the one-year MCLR from the side of the bank.
MCLR is directly related to the interest rates of the loan given by the bank. In such a situation, if the bank increases it, then it increases the EMI of the customers.
According to the bank's website, now the overnight MCLR is 8.35 percent, one-month MCLR 8.45 percent, three months MCLR 8.70 percent, and six months MCLR 8.95 percent. One year MCLR has become 9.10 percent. Whereas, the two-year MCLR is 9.15 percent and the three-year MCLR is 9.20 percent.
MCLR is a minimum interest rate, which is charged by the bank for taking a loan. It serves as a benchmark for other types of loans including personal, home, and car loans. For this reason, if there is any change in it, then it has a direct effect on the bank.
MCLR rates were increased by ICICI Bank and Bank of India earlier this month. This hike was implemented on August 1.
The decisions of RBI's MPC will be announced on August 10 by Reserve Bank Governor Shaktikanta Das. RBI MPC meeting started on 8th August. There has been no change in interest rates in the last two monetary policies.
