Amid pandemic, HDFC Bank has yet again offered a lending rate cut offer to its customers. The largest private sector bank in the country has slashed its marginal-cost based lending rate (MCLR) on loans for all tenors by 20 basis points (bps) which is effective from July 7, 2020.
The overnight MCLR now stands at 7.10 per cent, while the one-month MCLR is 7.15 per cent. The One-year MCLR, to which most of the Home Loans are linked will be 7.45 per cent, and three-year MCLR is 7.65 per cent.
The present rate cut is preceded by 5 bps rate last month as well. As an aftermath to COVID-19 pandemic, the RBI has slashed benchmark lending rates by 115 bps since March. Following the liquidity ease by the central bank, all banks are consistently offering lower lending rates.
Latest MCLR Rates, Effective from July 7, 2020
| Tenor | MCLR in % |
| Overnight | 7.1 |
| 1 month | 7.15 |
| 3 month | 7.2 |
| 6 month | 7.3 |
| 1 year | 7.45 |
| 2 year | 7.55 |
| 3 year | 7.65 |
A lower MCLR will benefit the existing customers with MCLR linked Home Loans. Based on the tenure of MCLR the actual rate of interest of the product re-sets. Thus, you will get the benefit of reduced EMIs on your next reset date.
Last month, SBI had also announced 25 bps rate cut in MCLR and 30 bps rate cut in its external benchmark linked products. The new SBI interest rates are effective from July 1. Similar in lines, the Canara Bank and Bank of Maharashtra have also reducted their MCLR by 10 basis points and 20 basis points respectively. The new rates are effective from today. The lending rates have been reduced across all tenors to benefit maximum customers.
Reshma Rawat is a passionate writer with a decade of experience in writing for a variety of domains (finance, technology, lifestyle, e-commerce, real estate, etc.). Currently, she is working as Assistant Manager - Content @MyMoneyMantra and writes blogs & webpages on financial products (loans, credit cards, insurance, government financial policies, mutual funds, etc.).
Director- MyMoneyMantra FinTech| A senior retail and commercial banking professional, adept at handling Business Development, Sales Planning & Growth, Product Strategy, Marketing Operations and Client advisory services phygitally.
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