Publish Date: | Tue, 07 Jun 2022 03:21 PM (IST)
HDFC Hikes Rate: HDFC Bank, India’s largest private sector bank, has announced a hike in interest rates for the second time in two months. The bank said on Tuesday that the Marginal Cost of Lending Rate (MCLR) has been increased by 35 basis points. Let us tell you that the MCLR rate is the minimum basis for deciding the interest rate for any type of loan (home loan, car loan or personal loan). That is, the bank does not offer a loan at a lower rate than this. HDFC Bank has increased these rates by 35 basis points i.e. 0.35 percent. The increase in the MCLR rate means that the loan will become costlier for new and existing loan customers. Their car loan, home loan, personal loan EMI will also increase.
HDFC Bank hikes lending rates by 0.35 per cent; EMIs to go up
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In this episode, Canara Bank and Karur Vysya Bank have also increased their interest rates. Canara Bank said that the new interest rates are effective from June 7. Canara Bank has increased the Margin Cost of Lending Rates (MCLR) by 0.05 per cent. At the same time, Karur Vysya Bank has increased the benchmark prime lending rates (BPLR) by 0.40 percent. Due to this, there will be an increase in EMI in all types of loans.
Why are rates rising?
In fact, the meeting of the Monetary Policy Committee of the Reserve Bank (RBI) is going on since Monday. According to the information, the results of this meeting will be announced on Wednesday. In the last meeting, RBI had increased the repo rate by 40 basis points. After this, all the banks like SBI, PNB, ICICI increased the MCLR rate.
There is a lot of discussion in the market that in view of rising inflation, RBI can once again increase the rates. It is expected that in this meeting of RBI, a decision can be taken to increase the repo rate by 35 to 40 basis points. For this reason, many banks have announced to increase their loan rates a day before.
Posted By: Shailendra Kumar