Loans are now expensive as HDFC Bank increase interest rates

HDFC bank new loan interest rates have increased. It means the customers who want to borrow money from the bank have to pay higher EMI’s. The private bank has increased it lending rate by taking Marginal Cost of Lending Rate (MCLR) in to the calculation. The new interest rates will be effective from November 7 ,2022.

hdfc bank interest rates

MCLR is announced by the RBI in India. This is the minimum rate below which the banks and financial institutions cannot lend to their customers.

As per the HDFC bank website, the overnight rate is now increased to 8.20% from 7.90% effective from 7th November 2022. If we look at one month MCLR it is now 8.25% from 7.90% and 3 month rate is now 8.30% while the 6 months MCLR is up 8.40%. The popular 1 year rate MCLR is calculated for the most of the consumer loans is increased to 8.55 percent. The two and three year MCLR’s are increased to 8.65% and 8.75% from the previous rate of 8.30 % & 8.40% respectively.

How it will effect HDFC bank customers ?

Banks need to follow the MCLR rate set by the RBI. So the HDFC bank new rates will have effect on the home loans, new vehicle loans, personal loans and other consumer durable loans.