HDFC Bank Increases Loan Interest Rates: What Borrowers Need to Know About the New Rates

HDFC Bank Raises MCLR Rates: Key Changes and What They Mean for Borrowers

HDFC Bank

HDFC Bank Loan Interest Rates: The HDFC Bank‘s official website states that as of July 8, 2024, the bank’s marginal cost of funds-based lending rates (MCLR) have been updated. For different tenures, there has been an increase in lending rates of up to 10 basis points (bps).

Changes in MCLR Rates

The bank has made the following adjustments to its MCLR rates:

These changes are effective from July 8, 2024.

Understanding MCLR

The lowest interest rate a bank can charge on a loan is called the Marginal Cost of Funds-Based Lending Rate (MCLR). By establishing a minimum interest rate threshold, it makes sure that the bank’s cost of funds is met. For borrowers, this rate is fixed unless otherwise specified by the Reserve Bank of India.

Prime Lending Rate and Base Rate

As of June 18, 2024, the benchmark prime lending rate of HDFC Bank is 17.90% annually. At the same time, as of June 18, 2024, the updated Base Rate is 9.40%.

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