Good news for hdfc bank customers! Just before the festive season, the bank has reduced its Marginal Cost of Funds-based Lending Rate (MCLR) by 5 basis points, giving borrowers a welcome relief. If you have a home loan or personal loan with hdfc bank, this reduction can lower your EMI burden slightly and make monthly payments easier to manage. Let’s break down what this means for you.
1. What is MCLR and How It Affects Your Loan?
MCLR (Marginal Cost of Funds-based Lending Rate) is the benchmark rate that banks use to set interest rates for loans. When MCLR decreases, loan interest rates linked to it also reduce, which means your EMI can come down depending on your loan type and rate structure.
2. The Reduction: 5 Basis Points
HDFC bank has reduced its MCLR by 0.05% (5 basis points) for a select period. Though it seems small, even this marginal drop can save hundreds or thousands of rupees per month for borrowers with large loans.
3. Impact on home Loan EMIs
If you have an hdfc home loan linked to the MCLR, the EMI reduction is immediate after your next reset date. For example, on a Rs 50 lakh loan with 7-year tenure, a 5-basis-point cut could reduce your monthly EMI by around ₹200–300. The total savings over the loan tenure could accumulate to several thousand rupees.
4. Other Loans Affected
Besides home loans, personal loans and floating-rate loans linked to MCLR may also benefit from this reduction. customers should check their loan statements or contact the bank to confirm how much their EMI will decrease.
5. How to Check Your New EMI
· Log in to the HDFC NetBanking portal
· Use the loan calculator to estimate EMI changes
· Contact your relationship manager or bank branch for exact figures
6. Why This Reduction Matters
Even a small reduction in interest rates gives extra breathing space for your monthly budget. You can use these savings for festive expenses, investments, or faster repayment of your loan.
7. Stay Updated
Interest rate changes may be temporary. Always monitor bank announcements and consider refinancing options if long-term savings can be increased.
📌 Final Takeaway
HDFC Bank’s MCLR cut is good news for borrowers, offering a slight reduction in EMIs and easing financial pressure. Even small drops in rates matter over long tenures, so stay informed and make the most of this opportunity.
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk..jpg)
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