HDFC Bank Cuts Lending Rates Despite RBI Hike, Check New MCLR And What It Means For Your EMI

Mumbai: HDFC Bank has decreased its MCLR rates by 5 to 15 basis points for various loan tenures, providing some relief to borrowers. This comes as the RBI increased the repo rate by 25 basis points to 5.50 percent. The overnight MCLR has been slashed by 10 basis points to 7.80 percent, while the one-month MCLR has seen the largest reduction at 15 basis points, now at 7.75 percent.

The three-month MCLR is down by 10 basis points to 7.95 percent, and the six-month MCLR stands at 8.15 percent, down from 8.25 percent. For longer tenures, the one-year MCLR is reduced to 8.30 percent from 8.35 percent, and the two-year MCLR is lowered to 8.40 percent from 8.45 percent. The three-year MCLR has also declined to 8.55 percent from 8.60 percent.

The impact on your EMI will depend on whether your loan is tied to MCLR and when your interest rate resets. However, a lower MCLR does not necessarily mean a direct reduction in your lending rate, as the final interest rate also depends on the bank's spread and other loan terms. Borrowers with loans linked to external benchmarks, such as the RBI repo rate, will not be directly affected by the MCLR change; their rates are determined by separate external benchmarks.