HDFC Bank has increased its overnight Marginal Cost of Funds-based Lending Rate (MCLR) by 5 basis points (bps) to 9.20%, effective February 7, 2025. The bank's other tenures remain unchanged.
The revised MCLR now ranges between 9.20% and 9.45%. The one-month MCLR remains unchanged at 9.20%, the three-month MCLR at 9.30%, the six-month and one-year MCLRs at 9.40%, and the two-year and three-year MCLRs at 9.45%.
The MCLR is the minimum interest rate a financial institution needs to charge for a specific loan. It dictates the lower limit of the interest rate for a loan.
The revised Base Rate will be 9.45% and will be effective from September 9, 2024. HDFC Bank Ltd.'s Benchmark PLR (BPLR) has been updated to 17.95% p.a. from September 9, 2024.
The home loan interest rates are linked to the Repo Rate and are variable throughout the tenor of the loan. Standard home loan rates for salaried and self-employed individuals range from 9.40% to 9.95%, while special rates for the same category range between 8.75% and 9.65% as on February 7, 2025.
The Reserve Bank of India (RBI) has reduced the repo rate by 25 basis points in its monetary policy review announced on February 7, 2025. This may lead to reduced EMIs for home loan borrowers.