Several big banks in India have recently updated their Marginal Cost of Lending Rates (MCLR). While some banks have increased their rates, others have left them unchanged.
MCLR is the minimum interest rate that banks charge customers for loans, and it is influenced by factors such as the cost of funds, market conditions,
and the repo rate set by the Reserve Bank of India (RBI). When the RBI changes the repo rate, it typically affects the MCLR rates of banks.
Why MCLR Rates Matter
The main goal of adjusting MCLR rates is to bring more transparency into the financial system. It also helps banks set fair interest rates that reflect their own costs.
If you’re planning to take a loan, understanding MCLR rates is crucial, as these rates directly impact the overall cost of your loan.
SBI and HDFC Bank’s MCLR Rates
India’s largest bank, State Bank of India (SBI), has kept its MCLR rates unchanged for December 2024. The overnight MCLR remains at 8.20%, and the one-year MCLR is 9.00%.
On the other hand, HDFC Bank has increased its overnight MCLR by 5 basis points, bringing it to 9.20%.
Other Banks’ MCLR Updates
Bank of Baroda has raised its MCLR rates as well. Their overnight MCLR now stands at 8.15%, while the one-year MCLR is 9.00%. Canara Bank has increased its MCLR rates by 5 basis points across all tenures.
Their overnight MCLR is now 8.35%, and the one-year MCLR has reached 9.10%.
Punjab National Bank (PNB) has also increased its MCLR by 5 basis points. The new overnight MCLR is 8.35%, and the one-year MCLR is 9.00%. However, IDBI Bank has not made any changes to its MCLR rates.
Their overnight MCLR remains at 8.45%, and the one-year MCLR stays at 9.20%. These updated rates are effective from 12 December 2024.