One of India’s largest private sector bank HDFC has reduced the marginal cost of funds-based lending rates (MCLR) on all loan tenors, including HDFC Gold loan, HDFC Car loan by 20 basis points effective from Tuesday, July 7, 2020. HDFC bank has already reduced MCLR by 5 basis points last month too.
According to the HDFC Bank website, following the reduction, MCLRs of the bank will range from 7.10 per cent to 7.65 per cent. One-year MCLR, to which many of the consumer loans are linked, will now be 7.45 per cent, while three-year MCLR has been set at 7.65 per cent. Banks generally review their MCLR every month.
Similarly, other banks have also reduced their MCLR rates during the COVID-19 pandemic. The RBI has cut its key rates by 115 bps since March.
Bank of Maharashtra and State-run Canara Bank also announced MCLR rate cut early this month:
Earlier this month, Bank of Maharashtra and State-run Canara Bank has cut their marginal cost of funds-based lending rates (MCLR) by 20 basis points and 10 basis points respectively, across all tenors effective from July 7th.
Bangalore-based Canara bank has also reduced its MCLR by 10 basis points. The overnight and one-month lending rate is 7.20 per cent each. Three-month MCLR lending rates are 7.45 per cent and one-year MCLR lending rates are 7.55 per cent.
Similarly, State Bank of India (SBI) had reduced its marginal cost of funds-based lending rates (MCLR) by 25 basis points across all tenors, will effect from July 10th, 2020