India's largest private sector lender HDFC Bank has increased its marginal cost of funds-based lending rates (MCLR) by 0.35 per cent or 35 basis points across all tenures, effective from June 7.
With the increase in MCLR rates, the equated monthly installment (EMI) on a variety of loans including housing, vehicle and personal loans will go up.
This is the second increase in lending rate by HDFC Bank since the Reserve Bank of India (RBI) hiked the policy repo rate by 40 basis points in early May.
On May 7, just a couple of days after the RBI's decision to hike the policy repo rate, HDFC Bank hiked MCLR by 25 basis points.
As per data updated on HDFC Bank's website, the overnight MCLR is increased to 7.50 per cent from the earlier 7.15 per cent.
The MCLR for one month tenure is increased to 7.55 per cent from the earlier rate of 7.20 per cent. For the three-month tenure, MCLR is increased to 7.60 per cent. For the six-month tenure, the revised MCLR stands at 7.70 per cent.
The one-year MCLR is increased to 7.85 per cent. The major part of the consumer loans is connected to the one-year MCLR.
The two-year MCLR has been increased to 7.95 per cent, and the three-year MCLR stands revised upward at 8.05 per cent.