HDFC Bank Cuts MCLR by 5 BPS, Loan EMIs to Get Cheaper for Borrowers

• HDFC Bank has reduced its Marginal Cost of Funds based Lending Rate (MCLR) by up to 5 basis points for select tenures, effective February 7.
• This reduction will lead to cheaper EMIs for customers whose home loans, personal loans, and some business loans are linked to MCLR.
• The three-year MCLR has been specifically cut by 5 basis points, while other tenures like overnight and one-month MCLR remain unchanged.
• The revised rates include an overnight MCLR of 8.25%, one-month at 8.25%, three-month at 8.30%, six-month and one-year at 8.40%, two-year at 8.50%, and three-year at 8.60%.
• This adjustment comes despite the RBI keeping the repo rate unchanged, indicating banks are independently adjusting lending rates based on funding costs.