Big relief to home loan customers: HDFC Bank reduced interest rates, know how much lower your EMI will be:

News India Live, Digital Desk: Before Holi, HDFC Bank has given a big gift to crores of its customers. The largest private sector lender has announced a cut in its benchmark lending rates (MCLR). After this cut, the bank’s revised rates are now 8.15% to 8.55% It has now come within the range of 8.25% to 8.60%.

Revised MCLR Rates (Tenure-wise New Rates)

The bank has reduced the rates for different tenures as follows:

Overnight and for a month: With a cut of 10 basis points it is now 8.15% (Earlier 8.25%).

for three months: After deducting 5 basis points 8.25% (Earlier 8.30%).

For six months and one year: Now with a cut of 5 basis points 8.35% (Earlier 8.40%).

For years two and three: These have also been reduced by 5 basis points, which are now respectively 8.45% and 8.55% Are.

What will be the impact on your EMI? (Impact on Borrowers)

Most retail loans (like home and car loans) one year MCLR Are connected to.

New Borrowers: New loan takers will immediately benefit from lower interest rates.

Existing Customers: Customers whose loan is linked to MCLR will get the benefit of this deduction. ‘Reset Date’ But you will get it. For example, if your loan reset is in March, your next EMI will be reduced.

Changes in FD rates also (Fixed Deposit Updates)

Along with reducing lending rates, the bank has also revised select fixed deposit (FD) rates:

3 years to 4 years 7 months FD: Interest rates for ordinary citizens increased from 6.40% to 6.50% Has been done.

Senior Citizen: Interest rate on the same period for senior citizens increased from 6.90% to 7% Has been done.

Why was this decision taken?

This reduction is believed to be the result of the flexibility given to banks by the Reserve Bank of India (RBI) between controlling inflation and managing liquidity. Rate reduction by HDFC Bank may inspire other competing banks to reduce their rates as well.