HDFC lower MCLR Rate w.e.f April 2020 | HDFC new lending rate | Latest HDFC MCLR Rate April 2020 | HDFC Bank Revised MCLR Rate
Country’s largest private sector lender HDFC bank lowers its lending rate by 20 bps (0.20 percent). Now the loan becomes cheaper with reduction in its marginal cost of funds-based lending (MCLR) by 20 basis points across all tenors. The new MCLR rate will be effective from April 7, 2020.
HDFC Bank Revised MCLR Rate | Latest Lending Rates
The marginal cost of fund based lending rate (MCLR) has been revised across all tenors ranging from overnight to 3 year. Revised MCLR rates are as follow –
|Tenor||MCLR in %|
The revised overnight MCLR stands at 7.60 percent, while the one-year MCLR, to which a host of loans are linked, has been reviewed to 7.95 percent. The three-year MCLR stands at 8.15 percent from April 7 onwards.
State Bank of India has also reduced its marginal cost of funds based lending rate (MCLR) by 35 bps across all tenors. Rates across the banking system have been headed south for the last few months, as the RBI and the government work in tandem to push the sagging economic growth. The RBI last month cut the policy rate by 0.75 percent to spur growth amid the COVID-19 crisis.
What is MCLR (Marginal Cost of Fund Based Lending Rate)?
MCLR is the minimum interest rate at which a bank can lend. MCLR is a tenor-linked internal benchmark, which means the rate is determined internally by the bank depending on the period left for the repayment of a loan.
This methodology for fixing interest rates was introduced by RBI in April 2016, replacing base rate mechanism.
Under MCLR structures, banks are free to offer all categories of loans on fixed or floating interest rate.