HDFC BANK has revised MCLR from 8.50 to 9.25% for different tenures. EMI of home loan, personal loan, car loan etc. will increase, as all these are directly affected by MCLR.
HDFC Bank, the largest private sector bank, has increased the interest rates on home loans and other loans for select periods. The bank has changed the marginal cost based lending rate (MCLR) by 10 basis points for all loans. This will increase the monthly installment of the loan.
What is MCLR?
MCLR is the basic minimum rate on the basis of which banks give loans to customers. HDFC Bank has revised MCLR from 8.50 to 9.25 percent for different tenures. The new rates have become effective. It is noteworthy that in the recently announced monetary review policy, RBI had kept the repo rate intact.
Monthly installment will increase: This step of banks will increase the burden on customers. EMI of home loan, personal loan, car loan etc. will increase, as all these are directly affected by MCLR. When a bank gives loan to a customer, it charges the interest rate at MCLR rate. If any change is made in this, the cost of the loan i.e. the interest rate is also affected.