Hdfc Bank Mclr Rate: HDFC Bank Raises MCLR: Check Latest Lending Interest Rates
Any change in the repo rate will change the marginal cost, and therefore the MCLR.
HDFC Bank’s latest MCLRs
The RBI raised its key rate to 4.40% with immediate effect last week. The cash reserve ratio was increased by 50 basis points by the central bank. Shortly after the announcement, many banks including State Bank of India (SBI), Bank of Baroda, Axis Bank and Kotak Mahindra Bank all announced an increase in their MCLR rates.
The Reserve Bank of India sets an internal benchmark rate for banks called the Marginal Cost of Funds Based Lending Rate (MCLR) (RBI). It helps banks determine the minimum interest rate for different types of loans.
According to HDFC Bank’s website, “The marginal cost of fund-based lending rate or MCLR is the minimum interest rate that a financial institution must charge for a specific loan. It dictates the lower bound of the rate This rate limit is set in stone for borrowers unless otherwise specified by the Reserve Bank of India.
According to the ICICI Bank website, “As of October 1, 2019, the RBI has introduced the External Benchmarking System to replace the MCLR for Home Loans, Business Loans and Working Capital Loans, etc This new loan rate system only applies to loans with floating interest rates and does not apply to fixed rate loans.