HDFC Bank MCLR Rate Hike: HDFC Bank hikes MCLR on loans: How much your EMIs will go up

raised its marginal cost of funds-based lending rate (MCLR) on loans across all tenures by 35 basis points (100 basis points = 1%), effective from June 7, 2022.

Earlier HDFC Bank had raised MCLR by 25 basis points on May 7, 2022.

Housing, vehicle, personal, and other loans will all become more expensive as a result of this hike. Bank customers would see higher equivalent monthly payments (EMI) for a variety of loans.

According to the website of the private lender, the overnight MCLR is now 7.50 percent, up from 7.15 percent previously. The MCLR for one month is 7.55 percent. The three-month and six-month MCLRs are both 7.60 percent and 7.70 percent. The one-year MCLR, which is connected to many consumer loans, will now be 7.85 percent, the two-year MCLR will be 7.95 percent, and the three-year MCLR will be 8.05 percent.

Source: HDFC Bank website

For home loan borrowers, it is important to note that hike in your EMI outgo will impact only when the reset date of your loan arrives. On the reset date, the bank will hike the interest rate charged on your home loan on the basis of the prevailing MCLR. Usually, banks link MCLR based home loans to one-year MCLR rate.

Thus, if your home loan is linked to MCLR rate and reset date of your home loan is in August, then bank will hike interest rate charged on your home loan in August. Till then you will continue to pay existing EMI.

This is unlike external benchmark based linked based loans, where interest rate are reviewed and revised atleast once in every three months. Thus, any change in external benchmark (repo rate etc.) will lead to faster change in your EMI outgo.

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