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

HDFC Bank, the country’s largest private lender, has decided to increase its benchmark marginal cost of funds-based lending rates (MCLR) on select tenors by up to 10 basis points. These revised rates came into effect on October 7, 2023, as announced on the HDFC Bank’s website. Additionally, the 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 ratesOvernight 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 the previous rate of 8.55 per cent.Three-month MCLR: It now stands at 8.85 per cent, up by 5 basis points from the 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 the previous rate of 9.15 per cent. The two-year and three-year MCLR rates have been kept unchanged at 9.20 per cent and 9.25 per cent, respectively.Bank base rateHDFC Bank has revised its base rate to 9.25 per cent, effective from September 25, 2023. Previously, the base rate was 9.20 per cent since June 16, 2023.Benchmark PLRThe benchmark PLR has been set at 17.85 per cent per annum, effective from September 25, 2023. Before this change, the benchmark PLR had stood at 17.70 per cent per annum since June 16, 2023.Notably, as per the RBI's lending regime introduced in October 2019, banks are required to link interest rates on home loans to selected external benchmarks. Banks have the flexibility to charge a spread over and above the external benchmark.MCLR updates from other banksHDFC Bank is not the only bank to revise its MCLR rates. Several other banks have also made changes to their MCLR rates, effective from October 1, 2023. Here are the one-year MCLR rates for some of these banks:HDFC Bank: 9.20 per centICICI Bank: 8.95 per centPNB (Punjab National Bank): 8.65 per centYes Bank: 10.25 per centBank of India: 8.70 per centThese adjustments in interest rates by HDFC Bank and other leading banks may have implications for borrowers, especially those considering loans and credit facilities.

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

HDFC Bank is raising MCLR rates by 10 basis points on select tenures, increasing the base rate by 5 basis points, and raising the PLR by 15 basis points.

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