Bank Interest Rate: HDFC Bank, the country’s largest private bank, has recently increased the Marginal Cost of Funds Based Lending Rate (MCLR) by 5-10 basis points. Due to this, the 1 year MCLR (to which most retail loans are linked) has increased from 8.35% to 8.40%. Similarly, the maximum increase for loans with a tenure of 2 years has been increased by 10bps, which is now 8.55%.

Let us tell you that despite the Reserve Bank of India recently keeping the repo rate stable at 5.25%, banks have increased the MCLR (Marginal Cost of Funds-Based Lending Rate) due to the pressure of their funding cost. This will have a direct impact on the monthly EMI of customers taking home loan, car loan and personal loan.

These banks also increased interest rates

Bank of Baroda- This government bank has revised its interest rates and implemented a new rate slab. Under this, interest on loans with five different tenures has been increased by 0.05%. Its 1 year MCLR has increased from 8.70% to 8.75%. MCLR for 6 months has increased from 8.45% to 8.50%. MCLR for 3 months has been increased to 8.20%, which was earlier 8.15%. Similarly, MCLR for 1 month and 1 day has been increased to 7.95% and 7.85% respectively.

Canara Bank- Canara Bank has also recently increased the interest rates after its financial review. Its one day MCLR has been increased from 7.90% to 7.95%. One month MCLR has been increased from 7.95% to 8.00% and three month MCLR has been increased from 8.20% to 8.25%. The six month rate has been increased from 8.55% to 8.60%.

Indian Bank- Indian Bank has increased its 1 year MCLR rate by 10 basis points to 8.55%, which was earlier 8.75%.

Bank of India- Bank of India has also increased its 1 year MCLR to 8.75%.

impact on customers

If your existing home or car loan is based on MCLR based floating rate, your monthly EMI will increase as soon as the loan reset date arrives or your loan tenure will become longer. With this step of banks, now personal loans or home loans will be offered to new customers at higher interest rates than before.

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Another shock amid rising inflation! This bank has increased the interest rates, home and car loans will be expensive.