New Delhi: HDFC Bank has cut its MCLR (marginal cost of funds-based lending rate) across tenures, with effect from 7 July 2020.
The reduction in MCLR comes in line with the repo rate cuts announced by the Reserve Bank of India (RBI) to provide banks with liquidity to encourage them to lend to borrowers at cheaper rates and push economic growth.
If your floating rate home loan is linked to MCLR, the new rates will become applicable on the reset date.
HDFC Bank MCLR rates with effect from 7 July 2020:
Tenure MCLR (in %)
Overnight 7.10
1 month 7.15
3 month 7.20
6 month 7.30
1 year 7.45
2 years 7.55
3 years 7.65
RBI had reduced the repo rate to 4 percent in May, a historic low, to help push growth in the country affected by the coronavirus pandemic.
Banks have been revising their lending rates as well as interest offered on deposits. This week, state-owned Canara Bank and Bank of Maharashtra also announced a reduction in their MCLRs with effect from 7 July. Last month SBI (State Bank of India) had reduced its MCLR by 25 basis points across all tenures.
