New Delhi: HDFC Bank announced an increase in loan interest rates by up to 5 basis points (bps) for a 3-month tenure. This follows a recent hike in its marginal cost of funds-based lending rates (MCLR) on September 7, 2024. With this change, HDFC Bank’s MCLR interest rates now range between 9.10 per cent and 9.45 per cent.
Latest Lending Rates – September 2024
As of September 2024, HDFC Bank has only revised its lending rates for the 3-month tenure, raising it by 5 basis points from 9.25 per cent to 9.30 per cent. The overnight rate remains at 9.10 per cent while the 1-month rate is unchanged at 9.15 per cent.
The six-month MCLR is set at 9.40 per cent and the one year rate which is linked to many consumer loans, stands at 9.45 per cent. The two-year and three-year MCLR rates also remain 9.45 per cent following the latest update.
What are marginal cost of funds-based lending rates (MCLR)?
The marginal cost of funds-based lending rate (MCLR) is the minimum interest rate that a bank can charge on a loan. It represents the lowest rate a borrower can get. Introduced by the Reserve Bank of India (RBI) in 2016, MCLR replaced the earlier base rate system. It helps banks set interest rates for different types of loans, including home, business, and personal loans.
As of June 18, 2024, HDFC Bank’s benchmark Prime Lending Rate stands at 17.90 per cent per annum. The revised undefined rate has been set at 9.40 per cent, effective from the same date.
