HDFC Bank Loan Costly: Private sector major HDFC Bank has dealt a big blow to its customers yesterday and it has increased its Margin Cost of Lending Rate (MCLR). HDFC Bank has increased its MCLR by a whopping 0.20 per cent in lump sum for all tenures. This is the third time after May that the bank has increased the interest on the loan. Since May, the overall interest rate of HDFC has been increased by 0.80 percent, after which the interest rates of its loans have increased significantly.
How much did the bank’s MCLR become?
HDFC Bank said that for a period of one year, the AMCLR will now be 8.05 per cent from 7.85 per cent earlier. Most of the consumer loans are related to this and as per the information available on the bank’s website, the interest on one day MCLR will now be 7.70 per cent as against 7.50 per cent earlier. At the same time, the interest on the three-year MCLR will be 8.25 percent.
What will be the effect of the bank’s decision to increase MCLR
HDFC Bank is the country’s leading private sector bank and after the steps taken by it, the EMI burden of HDFC’s home loan, car loan and personal loan customers will increase further.
Effect of RBI’s decision
The Reserve Bank of India increased the key policy rate repo by 0.90 percent in two phases in May-June to control rising inflation. Since then, banks have been continuously increasing the interest on the loan. Economic experts are apprehensive that in the coming monetary policy review, the RBI may increase its repo rate further, which will have a big impact in the form of increasing interest rates of banks.