HDFC Bank Home Loan Interest Rate
The country’s largest private sector bank, HDFC Bank, has given relief to crores of its customers. HDFC Bank has reduced the MCLR by 0.05%. Last week, the Reserve Bank of India (RBI) reduced the repo rate from 5.50% to 5.25%. After this, many big banks in the country have started reducing the rates related to home loans. Now the name of HDFC Bank has also been included in this count. The direct benefit of this reduction by the banks will be given to those people whose loans are linked to MCLR, RLLR, or RBLR. Due to the reduction in rates, either the EMI will reduce or the loan period will reduce.
HDFC Bank has reduced its MCLR rates by 5 basis points. The bank’s new MCLR range is now between 8.30% and 8.55%, down from 8.35% and 8.60% previously. This benefit will be available to customers whose home loans or other retail loans are linked to the MCLR.
Following the RBI’s repo rate cut, other banks are also reducing their benchmark loan rates. More banks are expected to reduce their rates in the coming days, which will ease the burden on home loan borrowers.
What is MCLR? MCLR is the minimum interest rate below which a bank cannot lend to a customer. This means that banks determine loan interest rates based on this rate. This system was introduced by the RBI in 2016 to ensure transparent interest rates and customer benefits. Whenever the RBI makes changes to its policies, it gradually impacts the MCLR.
