look news india
Taking a loan from HDFC Bank will cost you dearly. The country's largest private sector bank has revised its marginal cost of lending rates (MCLR). The bank has increased the MCLR for a period of 3 months. The bank has increased it by 5 basis points i.e. 0.05 percent. HDFC Bank's MCLR is between 9.10 and 9.45 percent. The new rates have become effective from Saturday. The bank has retained the old rates for all the remaining periods. The bank's overnight MCLR is 9.10 percent and 1 month MCLR is 9.15 percent.
Earlier last month, State Bank of India (SBI) had increased the MCLR by 0.10 percent. After this increase, the bank's MCLR based interest rate is between 8.20 percent and 9.1 percent. At the same time, the bank has increased the overnight MCLR to 8.20 percent.
What is the MCLR for 3 months?
HDFC Bank's 3-month MCLR rate has now increased from 9.25 percent to 9.30 percent. The bank's 6-month MCLR is 9.40 percent. Apart from this, the MCLR rate for all long periods is 9.45 percent. MCLR helps banks to decide interest rates on all types of loans including home loans, business loans and personal loans.
What is MCLR?
MCLR means Marginal Cost of Lending Rates. It is the minimum interest rate below which banks are not allowed to lend. That is, we can say that this is the minimum interest rate charged by the bank for lending. Reserve Bank of India implemented MCLR on 1 April 2016 to fix interest rates for loans. The decrease or increase in MCLR directly affects the borrowers. Due to this increase, customers will now have to pay more EMI on the loan than before.