Good News For HDFC Customers! Home Loan Interest Rates Lowered For THIS Tenure – Read Details

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In the latest RBI MPC meeting, held between June 5 to June 7, the Reserve Bank announced an unchanged repo rate. As a result, HDFC Bank has announced changes to its lending rates, known as Marginal Cost of Funds-Based Lending Rates (MCLR).

Read More: SBI Senior Citizen FD Interest Rates: Know maturity amounts on Rs 1.50 lakh, Rs 3 lakh, Rs 4.50 lakh and Rs 6 lakh investments in 1-, 3- and 5-year FDs

HDFC Bank’s New MCLR: Effective Date

The newly changed or updated MCLR will be effective from June 7, 2024, according to information on its official website.

When RBI Announced This Change?

This update comes on the same day when the Reserve Bank of India (RBI) decided to keep the repo rate unchanged for the eighth time in a row.

What Are The Changes HDFC Bank Has Announced?

MCLR On 2-Year Tenure

HDFC Bank has lowered the lending rate by 5 basis points (bps) on the 2-year tenure, reducing it from 9.35 percent to 9.30 percent. As a result, the home loan rates will be reduced for the same tenure.

Read More: How to manage your personal loan efficiently? Here are 5 best ways

Did HDFC Bank Has Changed MCLR On Other Tenures?

However, rates for other loan tenures remain the same.

What Is The New MCLR Of HDFC Bank?

The bank’s benchmark MCLR now ranges between 8.95 per cent to 9.35 per cent.

How Will It Impact Customers?

It’s important to note that the impact of MCLR revisions is not immediate. There’s a reset period for MCLR-based home loans, after which the rates get revised for borrowers.

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What Is Marginal Cost of Funds-Based Lending Rates or MCLR?

MCLR, or Marginal Cost of Funds-Based Lending Rates, is the minimum interest rate at which a bank can lend money.

How MCLR Will Be Decided?

It’s determined based on factors like the bank’s cost of funds, operating expenses, and tenure premium.

How Is It Connected To Home Loan Rates?

A lower MCLR usually means lower EMIs or a shorter loan tenure.

RBI MPC Meeting 2024: Repo Rate

With RBI maintaining a cautious stance on policy rates, economists predict that borrowing costs may remain relatively high for some time. Many economists believe that RBI may consider rate cuts later in FY 2024-25, once inflation comes down to a level that aligns with RBI’s targets.