Loan EMIs set to go up as HDFC Bank raises interest rates

HDFC Bank, country’s largest private lender, has decided to increase its benchmark marginal cost of funds-based lending rates (MCLR) on select ters by up to 10 basis points. se revised rates came into effect on October 7, 2023, as anunced on HDFC Bank’s website. ditionally, bank has also raised its base rate by 5 basis points and its benchmark Prime Lending Rate (PLR) by 15 basis points.

Latest HDFC Bank MCLR rates

• Overnight MCLR: It has been raised from 8.50 per cent to 8.60 per cent, resulting in loans being offered between 8.55 per cent and 9.25 per cent.
• One-month MCLR: Increased by 10 basis points to 8.65 per cent from previous rate of 8.55 per cent.
• Three-month MCLR: It w stands at 8.85 per cent, up by 5 basis points from previous rate of 8.80 per cent.
• Six-month MCLR: Raised to 9.10 per cent from 9.05 per cent.
• One-year MCLR: Linked to many consumer loans, it has been hiked by 5 basis points to 9.20 per cent from previous rate of 9.15 per cent. 
• two-year and three-year MCLR rates have been kept unchanged at 9.20 per cent and 9.25 per cent, respectively.

Bank base rate

HDFC Bank has revised its base rate to 9.25 per cent, effective from September 25, 2023. Previously, base rate was 9.20 per cent since June 16, 2023.

Benchmark PLR

benchmark PLR has been set at 17.85 per cent per annum, effective from September 25, 2023. Before this change, benchmark PLR h stood at 17.70 per cent per annum since June 16, 2023.

tably, as per RBI's lending regime introduced in October 2019, banks are required to link interest rates on home loans to selected external benchmarks. Banks have flexibility to charge a spre over and above external benchmark.

MCLR updates from or banks

HDFC Bank is t only bank to revise its MCLR rates. Several or banks have also me changes to ir MCLR rates, effective from October 1, 2023. Here are one-year MCLR rates for some of se banks:

• HDFC Bank: 9.20 per cent
• ICICI Bank: 8.95 per cent
• PNB (Punjab National Bank): 8.65 per cent
• Yes Bank: 10.25 per cent
• Bank of India: 8.70 per cent

se justments in interest rates by HDFC Bank and or leing banks may have implications for borrowers, especially those considering loans and credit facilities.