Yes Bank, Canara Bank, HDFC Bank, ICICI: 4 Banks Have Revised Home Loan, Other Interest Rates In Jan 2024

As we have entered the new year 2024, certain banks in India including Yes Bank, Canara Bank, HDFC Bank, and ICICI Bank, among others have revised their marginal cost-based lending rates (MCLR). Before we proceed to the revised home loan rates and other loan interest rates of these banks, let us first understand the meaning of MCLR.

What is MCLR?
MCLR is the minimum lending rate below which a bank is not allowed to lend. MCLR replaced the earlier base rate system to determine the lending rates for commercial banks. The Reserve Bank of India (RBI) sets a fixed internal reference rate for banks. This interest rate is, then, used by banks and lending institutions that come under RBI to define the minimum interest rate applicable to different loan types.
On 1 April 2016, the central bank implemented MCLR to determine rates of interest for loans. It is an internal reference rate for banks to determine the interest they can charge on loans. For this, they take into account the additional or incremental cost of arranging an additional rupee for a prospective buyer.

Latest HDFC Bank, Yes Bank, Canara Bank, ICICI Bank Lending Rates:

HDFC Bank Latest Rates:

HDFC Bank's MCLR ranges from 8.80% to 9.30%. The overnight MCLR has been increased by 10 basis points (bps) from 8.70% to 8.80%. The one-month MCLR of HDFC Bank has raised by 5 bps to 8.80% from 8.75%. The three-month MCLR will be raised to 9% from 8.95%. The six-month MCLR has been hiked to 9.20. The one-year MCLR has been raised to 9.25% from 9.20%. The 3-year MCLR was left untouched at 9.30%.

Yes Bank lending rates
Yes Bank has also revised its lending rates.
According to the bank's website, the new rates are with effective from January 1, 2024. The overnight rate is 9.2%. The MCLR-based lending rate for one month stands at 9.45%. Yes Bank's six-month and three-month rate are 10.25% and 10% respectively. The bank's one-year rate is 10.50%.

ICICI Bank lending rates
ICICI Bank has hiked its MCLR by 10 bps with effect from January 1, 2024. The overnight rate has been revised to 8.6% from 8.5%. The MCLR-based lending rate for one month and three months is 8.6% and 8.65% respectively. The six-month rate has been raised to 9% from 8.90% and the one-year rate has been revised to 9.10% from 9%.

Latest Canara Bank lending rates
The bank has hiked MCLR-based lending rates by 5 bps across various tenors with effect from January 2023. The overnight rate has been changed to 8.05% from 8%. The one-month, three-month, and six-month rate of the bank are 8.15%, 8.25%, and 8.60% respectively. The one-year rate is changed to 8.80% from 8.75%. The two-year rate has been hiked to 9.10%. The three-year rate of the bank stands at 9.20%.
Canara Bank Repo Linked Lending rate (RLLR) effective from January 12 is 9.25%.