HDFC Bank has raised the Marginal Cost of Funds Based Lending Rate (MCLR) by 0.05% on loans with specific maturity periods. This hike, effective from November 7, 2024, makes certain loans like personal and auto loans a bit costlier for borrowers. The bank’s latest move comes as the Reserve Bank of India (RBI) maintains its repo rate at 6.5% for the tenth consecutive time, impacting lending rates across the banking sector.
New MCLR Rates for Various Loan Terms
The latest MCLR adjustments mean that the overnight MCLR has now increased from 9.10% to 9.15%, while the one-month rate is now 9.20%. However, rates for other tenors such as three-month, six-month, and one-year remain steady at 9.30%, 9.45%, and 9.45%, respectively. The unchanged one-year MCLR is significant, as it is the standard rate for most consumer loans, including personal and auto loans.
How MCLR Affects Borrowers
MCLR determines the lowest rate at which banks can lend, making it an important benchmark for loans like auto, personal, and some types of housing loans. It was introduced by the RBI in 2016, replacing the older base rate system, to offer more transparent lending rates for customers.
Borrowers who took loans before 2016 are still likely on older base rate or Benchmark Prime Lending Rates (BPLR). For these customers, lending rates won’t be directly impacted by the MCLR changes, although they may still be affected by rate adjustments based on RBI’s policies.
Customer Advisory on Fraudulent Investment Platforms
HDFC Bank has also issued a fresh advisory to customers, cautioning them about fraudulent investment schemes circulating on social media. Many of these scams involve fake trading platforms that promise high returns on investments in shares, IPOs, cryptocurrencies, and other assets. HDFC urges its customers to be vigilant and avoid such schemes, highlighting the importance of safe investment practices.
