HDFC Bank hikes lending rates; loan EMIs to increase further

HDFC Bank hikes lending rates: HDFC Bank has hiked its marginal cost of funds-based lending rates (MCLR) by 5-15 basis points (bps) across tenures. The new loan interest rates are effective from May 8, 2023, as per HDFC Bank’s website.

HDFC Bank loan interest rates

According to the bank website, the overnight MCLR is now 7.95%. The MCLR for one month is 8.10% and the three-month and six-month MCLRs will be 8.40% and 8.80%. The one-year MCLR, which is connected to many consumer loans, will now be 9.05%, the two-year MCLR will be 9.10%, and the three-year MCLR will be 9.20%.

HDFC Bank hikes lending rates effective today (8 May 2023)

Overnight: 7.95%

1 Month: 8.10%

3 Month: 8.40%

6 Month: 8.80%

1 Year: 9.05%

2 Year: 9.10%

3 Year: 9.20%

After the Reserve Bank of India's (RBI) repo rate hikes since May 2022,  the misery of home loan borrowers worsened. The equated monthly instalments (EMIs) which have already increased significantly since May 2022, are going up further as the banks are continuously hiking lending rates. 

HDFC, HDFC Bank merger

Last month, the Reserve Bank of India (RBI) permitted HDFC Bank to meet PSL requirements in a staggered fashion over three years to smooth out its merger with its parent company Housing Development Finance Corp.

At the end of the first year after the merger, the combined entity will need to include one-third of HDFC's loan book to calculate the amount of PSL required, the RBI had said.

As of May 5th, HDFC Bank's market cap stood at over ₹9.07 lakh crore, while HDFC's m-cap was at over ₹4.95 lakh crore.