- HDFC Bank cuts MCLR rates
- The new rates are effective from today
- With the new rates, EMIs on home and other loans tied to its MCLR cheaper
HDFC Bank which is India’s biggest private sector bank has decided to slash the Marginal-Cost based Lending Rate (MCLR) on loans for all tenors by 10 basis points (bps).
This reduction in the lending rate of the HDFC Bank will make the EMIs (Equated Monthly Installments) on home and other loans that are tied to its marginal cost of funds based lending rate cheaper.
As per the official website of the HDFC Bank, following the latest reduction in the rate its overnight MCLR stands reduced to 7%, on the other hand, the 1 month MCLR is now at 7.05%.
The 3 month and 6 month MCLR stands at 7.10% and 7.20% respectively following the latest slash in rates by the largest private lender of India.
The 1 year MCLR to which most of the customer loans are linked has now been reduced to 7.35%. However, the 2 year and 3 year MCLR now stands at 7.45% and 7.55% respectively.
The revised MCLR by HDFC Bank effective from 7th August 2020 are as follows:
- Overnight: 7.00%
- 1 month: 7.05%
- 3 month: 7.10%
- 6 month: 7.20%
- 1 year: 7.35%
- 2 year: 7.45%
- 3 year: 7.55%
The public sector Canara Bank has also announced cut in the MCLR rate by up to 30 basis points (bps) across several tenors. Just like HDFC Bank, Canara Bank’s revised lending rates will be effective from 7th August 2020, the bank said.
India’s second largest private sector bank, ICICI Bank, has also decided to slash its lending rates by 10 basis points (bps) across all tenors and its rates have been effective since 1st August 2020.
After slashing the interest rates by as much as 115 basis points (bps) since February, the MPC or the Monetary Policy Committee, after 3 days of deliberations, unanimously voted to keep the policy repo rate same at 4%.
The Monetary Policy Committee also decided to “continue with the accommodative stance of monetary policy as long as necessary to revive growth, mitigate the impact of COVID-19 while ensuring that inflation remains within the target” zone, said Shaktikanta Das Governor of the Reserve Bank of India (RBI).