HDFC Bank MCLR Loan Interest Rates: Latest SBI, ICICI Bank, HDFC Bank MCLR Loan Interest Rates After July Rise

In an effort to curb inflation, the Reserve Bank of India (RBI) has raised the repo rate by 90 basis points over the past two months. As a result, banks have started raising their lending rates, impacting both new and existing borrowers, who now have to pay higher EMIs.

In July, major Indian banks, such as

and , increased their marginal cost of funds-based lending rate (MCLR) over different durations.

Here is a comparison of the MCLR on loans from , HDFC Bank and ICICI Bank after the July hike.

State Bank of India MCLR

The State Bank of India has increased its marginal cost of funds-based lending rate (MCLR) by 10 basis points for all mandates. The new rates are applicable from July 15, 2022.

According to the State Bank of India website, the bank has decided to increase the MCLR for loans with a one-year term from 7.40% to 7.50%. The six-month MCLR rate was raised from 7.35% to 7.45%, while the two-year and three-year MCLR rates were raised to 7.7% and 7.8%, respectively.


HDFC Bank has increased its marginal cost of funds-based lending rate (MCLR) on loans of all maturities by 20 basis points (100 basis points = 1%), effective July 7, 2022.

According to the HDFC Bank website, the overnight MCLR is now 7.70%, down from 7.50% previously. The MCLR for one month is 7.75%. The three-month and six-month MCLRs are 7.80% and 7.90%, respectively. The one-year MCLR, which is tied to many consumer loans, will now be 8.05%, the two-year MCLR will be 8.15%, and the three-year MCLR will be 8.25%.



ICICI Bank raised its marginal cost-based lending rate (MCLR) by 20 basis points for all mandates. One basis point equals 0.01%. The higher interest rates will come into effect on July 1, 2022.

According to the ICICI Bank website, the overnight MCLR rate was increased to 7.50% from 7.30%. The one-month and three-month MCLRs were increased to 7.50% and 7.55%, respectively.


What is MCLR?

The MCLR is the minimum interest rate a bank can charge for a loan. Banks are permitted to issue any class of fixed or variable interest rate loan under the MCLR regime. Therefore, for all loans linked to this benchmark, the bank will not lend at a rate lower than the MCLR of this particular maturity.

According to

website, “The methodology uses marginal cost or the latest cost terms reflected in the interest rate that banks give to obtain funds (deposits and borrowings) when setting their lending rate. This means that the interest rate granted by a bank for deposits and loans are the decisive factors in the calculation of the MCLR.”


Comments are closed.