Great gift for HDFC Bank customers, EMI burden will be reduced, here’s why

If you also have an account with HDFC Bank and have an ongoing loan, then this news is no less than good news for you. Yes, giving a big gift to its customers, HDFC Bank has revised its marginal cost of lending rate i.e. MCLR. After the change in marginal cost, there will be a change in interest rates on all types of loans, including mortgage loans, auto loans, personal loans, and educational loans.

Customers will directly benefit from the reduction in marginal cost, thereby reducing the EMI burden on customers. The new rates come into effect from Saturday, June 7. The bank’s MCLR ranges between 8.95 per cent and 9.35 per cent.

The MCLR rate is like this

HDFC Bank’s overnight MCLR rate has reached 8.95 percent. There has been no change in the bank’s one-month MCLR. It remains at 9 percent. The bank’s three-month MCLR has become 9.15 per cent. The MCLR for the six-month loan period has become 9.30 percent. MCLR will be 9.30 per cent between one year and two years. A change of 5 basis points has been made in this. The bank’s two-year MCLR is 9.30 and three-year MCLR is 9.35 per cent. There have been no changes to MCLR for over three years.

What is MCLR?

Through the marginal cost of lending rate, the bank decides the interest rates of many types of loans such as home loans, car loans, personal loans, business loans, etc. While when MCLR increases, the EMI burden on customers increases, when it decreases, the EMI burden reduces.

RBI gave relief

In the RBI’s MPC meeting, the Reserve Bank did not make any change in the repo rate. The repo rate is currently stable at 6.50 per cent. The Reserve Bank has made no change in the repo rate for the eighth consecutive meeting. The repo rate was last changed in February 2023. It was then increased to 6.5 percent, i.e. the repo rate remained stable at the same level for 16 months.

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