According to the details on HDFC Bank's website after the latest rate increase, its overnight MCLR stands at 7.50%, while one-month MCLR is 7.55%. Three- month and six-month MCLR stand at 7.60% and 7.70% respectively.
One-year MCLR, to which many of the consumer loans are linked, will now be 7.85%, two-year MCLR will now be 7.95%, while three-year MCLR has been set at 8.05%. These new rates are effective Tuesday, 7 June, 2022, as per HDFC Bank's website. The hike in HDFC Bank's lending rate will make EMIs on home and other loans tied to its marginal cost of funds based lending rate dearer.
HDFC Bank's tenor-wise MCLRs effective from 7 June 2022
Overnight - 7.50%
1 month - 7.55%
3 month - 7.60%
6 month - 7.70%
1 year - 7.85%
2 year - 7.95%
3 year - 8.05%
Several other banks including State Bank of India (SBI), Bank of Baroda, Axis Bank and Kotak Mahindra Bank have also announced an increase in their MCLR rates.
Banks have been announcing hike in their lending rates after the RBI in a surprise move last month had raised the benchmark lending rate by 40 basis points (bps) to 4.40 per cent in an off-cycle hike, its first increase in borrowing rates since August 2018, to contain inflation. The RBI Governor Shaktikanta Das-led monetary policy committee (MPC) is expected to raise the repo rate again in the upcoming policy meetings.
Inflation above the 6% upper range prompted the central bank to raise rates in a surprise meet. India's retail inflation accelerated to an eight-year high in April, remaining above the central bank's tolerance limit for a fourth month in a row, and is likely to stay elevated.
