After SBI, four top lenders including HDFC Bank, IDFC Bank raise MCLR; check latest rates here

A number of banks recently revised their marginal cost of funds-based lending rates (MCLR) despite the Reserve Bank of India (RBI) keeping its repo rate constant since Feb 2023.

This means the EMIs (equated monthly instalments) of loans such as personal or auto loans that are linked to MCLR are set to go up. The home loans which are linked to the repo rate will not witness a rise.

MCLR is the minimum interest rate below which the bank is not supposed to charge.

Largest state lender State Bank of India (SBI) raised its MCLR in December 2023 from 8.65 to 8.85 percent for borrowers with the highest credit score. The minimum lending interest rate, meanwhile, on electric cars, is 8.75 percent per annum.

The lending rate hike was soon followed by some other lenders, which have raised their lending rates. These banks include Bank of Baroda, HDFC Bank, IDFC Bank and Punjab National Bank (PNB).

Let us take a look at the interest rates charged by these banks:

HDFC Bank: The largest private lender’s six-month MCLR has risen to 9.20 percent. The overnight MCLR has been raised by 10 basis points to 8.80 percent, 3-month MCLR has been raised by 5 basis points to 9 percent, one-month MCLR has also been raised by 5 basis points to 8.80 percent and 1-year MCLR, too, rose by 5 basis points, to 9.25 percent.

The 3-year MCLR remains unchanged at 9.30 percent.

Bank of Baroda: Bank of Baroda has raised its fixed interest rate on car loan to 8.80 from 8.7 percent earlier for borrowers with highest credit score. The interest rate can be as high as 11.25 percent per annum.

The floating rate charged by Bank of Baroda ranges between 9.40 percent and 12.65 percent.

Punjab National Bank: PNB has also raised its MCLR by 5 basis points across the tenors with effect from January 1, 2024.The overnight MCLR has been raised from 8.20 percent to 8.25 percent.

The one-month MCLR is now 8.3 percent against 8.25 percent earlier.

The 3-month MCLR is 8.40 percent, six-month MCLR is 8.60 percent, one-year MCLR is 8.70 percent and 3-year MCLR is 9 percent.

IDFC Bank: IDFC Bank's new MCLR came into effect from Jan 8, 2024. The overnight and one-month MCLR is now 9.5 percent, three-month MCLR is 9.75 percent, 6-month MCLR is 10.10 percent and 1-year MCLR is 10.25 percent.