HDFC Bank has increased its Marginal Cost of Funds-based Lending Rate (MCLR) by 5 to 15 basis points across all loan tenures, with the revised rates effective from November 7. The move is expected to increase borrowing costs for customers whose loans are linked to the MCLR benchmark.
After the revision, the bank’s MCLR rates now range between 7.85% and 8.70%, compared to the earlier range of 7.75% to 8.55%. The biggest increase of 15 basis points has been applied to the six-month, one-year, two-year and three-year tenures.
According to the updated rate structure, the overnight MCLR has risen to 7.85% from 7.80%, while the one-month and three-month rates have increased by 10 basis points each. Longer-duration tenures have witnessed a steeper rise, reflecting higher borrowing costs for customers over extended loan periods.
The revision may affect existing borrowers with floating-rate home loans, personal loans, auto loans and other credit facilities linked to HDFC Bank’s MCLR. However, the impact on borrowers will depend on factors such as the benchmark linked to the loan, the applicable spread and the loan’s interest rate reset date.
For many borrowers, the revised rates may result in higher EMIs or a longer repayment tenure when the next reset cycle takes effect, depending on the terms of their loan agreement.
