HDFC Bank hikes MCLR rates 15 bps across tenures: Check impact on your loan

Business Standard reported that HDFC Bank raised its MCLR by 15 basis points (bps) across all tenures, effective November 7. One basis point is one-hundredth of a percentage point, so 15 bps is 0.15 percentage point. MCLR, or marginal cost of funds-based lending rate, is the minimum rate at which a bank lends; most home and personal loans are priced as a spread over it. The outlet said the hike applies to every MCLR tenure and that home and personal loan borrowers may face higher interest costs. The report does not give the new rate for each tenure. Loans linked to MCLR are usually reset when the benchmark changes, so a higher MCLR can raise the interest cost on such loans.

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