HDFC Bank Loans Got Costlier After a 10 bps Hike in MCLR

HDFC bank has raised its MCLR (marginal cost of funds based lending rate) for all maturity tenors by 10 basis points (bps) with effect from June 7. MCLR is the rate at which the bank lends to its customers.

As per the notification on HDFC bank's website, the MCLR effective from June 7 are:

The decision to increase the lending rates comes a day after the Reserve Bank of India (RBI) raised its repo rate by 25 bps to 6.25 percent and reverse repo rate to 6 percent in the monetary policy review.

Last week, the country's largest bank State Bank of India also revised its MCLR by 10bps, which still provides cheaper lending rates in comparison to HDFC bank-the largest private sector bank in India by market capitalization.