Multiple lenders, such as
State Bank of India (SBI), HDFC Bank, Bank of Baroda, IDFC Bank, and Punjab National Bank (PNB), have recently adjusted their marginal cost of funds-based lending rate (MCLR). This alteration in MCLR implies that equated monthly instalments (EMIs) will become more costly for individuals availing loans tied to these MCLR rates.
This holds true for various consumer loans, including personal, auto, and home loans linked to MCLR.
Loans linked to MCLR undergo a reset period, post which the interest rates are revised for borrowers.
This revision in MCLR rates occurs despite the Reserve Bank of India (RBI) Governor Shaktikanta Das-led Monetary Policy Committee (MPC) keeping repo rate unchanged at 6.5% for five consecutive times.
However, preceding this pause in April, the central bank had implemented six consecutive rate hikes, totalling 250 basis points.
Here's a look at the MCLR rates of the banks after revision:
The State Bank of India (SBI) hiked the MCLR on select tenures by 5-10 basis points in December 2023. As per SBI's website, from December 15, MCLR on one-year tenure has been hiked to 8.65%.
Here's a look at revised MCLR of SBI, effective December 15, 2023:
| Tenor | MCLR (In %) |
|---|
| Overnight | 8.00% |
| One Month | 8.20% |
| Three Months | 8.20% |
| Six Months | 8.55% |
| One Year | 8.65% |
| Two Years | 8.75% |
| Three Years | 8.85% |
(Source: SBI)
HDFC Bank
HDFC Bank revised its MCLR on January 8, 2024.
The six-month MCLR saw an increase to 9.20%. Meanwhile, the overnight MCLR rose by 10 basis points to 8.80%, and the three-month MCLR by 5 basis points to 9%, among others.
Here's a look at revised MCLR of HDFC Bank, effective January 8, 2024:
| Tenor | MCLR (In %) |
|---|
| Overnight | 8.80% |
| One Month | 8.80% |
| Three Months | 9.00% |
| Six Months | 9.20% |
| One Year | 9.25% |
| Two Years | 9.25% |
| Three Years | 9.30% |
(Source: HDFC Bank)
Bank of Baroda
Bank of Baroda changed its MCLR on December 12, 2023.
Here's a look at revised MCLR of Bank of Baroda, effective December 12, 2023:
| MCLR Benchmark | MCLR in (%) |
|---|
| Overnight MCLR | 8.00% |
| 1 Month MCLR | 8.30% |
| 3 Month MCLR | 8.40% |
| 6 Month MCLR | 8.55% |
| 1 Year MCLR | 8.75% |
(Source: Bank of Baroda)
Punjab National Bank (PNB)
PNB revised its MCLR with effect from January 1, 2024.
Here's a look at revised MCLR of PNB, effective January 1, 2024:
| Tenor | MCLR |
|---|
| Overnight | 8.25% |
| One month | 8.30% |
| Three months | 8.40% |
| Six months | 8.60% |
| One year | 8.70% |
| Three years | 9.00% |
(Source: PNB)
IDFC Bank
IDFC Bank revised its MCLR with effect from January 8, 2023.
Here's a look at revised MCLR of IDFC Bank, effective January 8, 2024:
| Tenor | MCLR in % |
|---|
| O/N | 9.50% |
| 1m | 9.50% |
| 3m | 9.75% |
| 6m | 10.10% |
| 1 Year | 10.25% |
(Source: IDFC Bank)
(Edited by : Shoma Bhattacharjee)
