HDFC Bank's Latest MCLR Adjustments

HDFC Bank has announced an increase in its Marginal Cost of Funds-based Lending Rate (MCLR) for short-term periods by up to 5 basis points (bps). The overnight MCLR has risen by 5 bps, moving from 9.15% to 9.20%. This adjustment took effect from December 7, 2024.

Other MCLR tenures, such as the one-month and three-month periods, remain unchanged at 9.20% and 9.30%, respectively. The six-month and one-year MCLR, which are significant for consumer loans, stand at 9.45%. The two-year and three-year tenures are set at 9.45% and 9.50%, respectively.

Understanding MCLR

The Marginal Cost of Fund-Based Lending Rate (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, unless otherwise specified by the Reserve Bank of India.

HDFC Bank's Lending Structure

The Prime Lending Rate at HDFC Bank is 17.95% annually, effective September 9, 2024. The base rate is set at 9.45%, also effective from the same date. All lending rates are linked to the Policy Repo Rate, which currently stands at 6.50%.

Home Loan Rates

For salaried and self-employed borrowers, the interest rates range from 8.75% to 9.65%, calculated by adding 2.25% to 3.15% to the base Repo Rate of 6.50%. The standard rates for all borrowers range from 9.40% to 9.95%, derived by adding 2.90% to 3.45% to the base Repo Rate of 6.50%. These rates are valid for loans under the Adjustable Rate Home Loan Scheme (with Floating Interest Rate) offered by HDFC Bank.