HDFC Bank Hikes MCLR Rates By Up To 15 bps For Select Tenures

HDFC Bank, a leading private sector lender, has raised its benchmark marginal cost of funds-based lending rates (MCLR) by 5 basis points to 15 basis points, effective from Wednesday, June 07, 2023, according to HDFC Bank's website.

Lending rates have been raised from overnight to six-month terms. The MCLR rates have not altered for tenures longer than a year. The current 1-year MCLR rate at HDFC Bank is 9.05%, while the 2-year and 3-year MCLR rates are 9.10% and 9.20%, respectively.

HDFC Bank - Marginal Cost Of Funds-Based Lending Rate (MCLR)

Tenor	MCLR
Overnight	8.10%
1 Month	8.20%
3 Month	8.50%
6 Month	8.85%
1 Year	9.05%
2 Year	9.10%
3 Year	9.20%

Source - HDFCbank.com

This most recent change to MCLR rates comes after a change made to MCLR rates on May 8 by HDFC Bank that included a 5 to 15 basis point increase across all rates. To reflect the current market dynamics and keep a balance between its borrowing costs and lending rates for customers, HDFC Bank adjusts the MCLR rates.

MCLR

The MCLR, or Marginal Cost of the Fund-Based Lending Rate, is the lowest interest rate that a financial institution is required to charge for a particular loan. It establishes the lowest possible interest rate for a loan. Unless otherwise stated by the Reserve Bank of India, this rate restriction is unchangeable for borrowers.