After HDFC, SBI Increases Loan Interest Rates (Check Revised Rates)

HDFC, the largest private sector bank in India recently increased their marginal cost of funds-based lending rates (MCLR) on two short-term tenures by up to 5 basis points (bps). When an MCLR increases, the interest rates on your loan EMIs also naturally increase. Now SBI, India’s largest public sector bank has also revised its home loan interest rates by 5 basis points (bps).

Catch more details below on what your HDFC & SBI revised loan interest rates are starting November 2024.

Let’s quickly learn about what MCLR means before we proceed to understand the revised loan interest rates for SBI and HDFC banks starting November 2024.

What is MCLR?

In simple terms, MCLR is the lowest interest rate a bank can charge for loans. If MCLR goes up, your loan payments may also go up and if MCLR goes down, your loan payments may also go down (for select tenures/loans).

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Understanding this with a simple example💡:

Say, you have a home loan for 20 years tenure and the present interest rate you pay is 9.40%. Now, if the bank increases the MCRL for a 1-year tenure by 0.05% or 5 BPS, your EMI will only increase if your loan is linked to the 1-year MCLR reset period. To be sure, check your loan documents to see which MCLR your loan is linked to.

If we change the tenure to 6 months or 3 months, your loan interest rate will not be affected (directly) since MCLR for only 1-year tenure has increased in the given example.

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HDFC MCLR increased on 2 short-term tenures by 5 Basis Points (0.05%) on 1-month tenure and 3-year loan tenure. For a one-month tenure, HDFC increased the loan interest rate from 9.10% to 9.15% and for a three-year tenure, the revised HDFC loan interest rates now start from 9.50%.

Here’s a list of HDFC Bank loan interest rates (revised) starting November 2024

RBI has kept the Repo Rate unchanged at 6.50% and all lending rates will be benchmarked to the same.

Apart from these two tenures, Overnight or one month and 3-years, HDFC has not at present changed any other MCLR. However, note that if you had taken a loan from HDFC before 2010, the Benchmark PLR now stands at 17.95% per annum and the Base Rate at 9.45%, effective from September 9, 2024.

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Also read: Best credit cards for gold purchases in India

Coming to SBI, the public sector bank has revised the SBI Home Loan interest rates. Basically, the State Bank of India has increased one-year MCLR by 0.05% and this tenor is linked to many home loans & auto loans as well so if your home loan or auto loan is linked to 1-year MCLR, you will have to pay more interest rate on your loan EMIs starting November 15th, 2024.

SBI has also increased the MCLR for 3-month and 6-month tenures as well by up to 5 basis points.

Here’s a detailed overview to understand how much SBI loan interest rates have increased.

So this was all about sharing the recent news of HDFC and SBI revising their loan interest rates which you must be aware of if you have an active loan in any of these banks.

Those who wish to save money on their home loan payments or loan EMIs, in general, might want to check out this tip by our dimer @IamRage

“There are no direct ways to get offers for home loan payment, but there are some indirect methods , I have a loan and in 8th year currently and every month I pay 20-30% of the EMI as an additional payment and when ever possible I make use of these indirect ways

1. Will buy Amazon vouchers from Amex portal whenever they have any additional promotional offers like 2k on 50k etc and then sell them for 2.5% and use that to pay the loan top-up amount 5-6% gain

2. Redeem points CC points and reward points to cashback and pay the same amount to loan

3. Previously when Airtel wallet allowed to load 9k via credit card used that method - if there are any similar options you can try that. Paytm as well when there was good offers

4. Doing additional recharges/bill payments using Airtel/Rupay offers and accumulate that amount and use it for loan payment

Others might feel this as very tedious and tiring activity but I just used to this with a mindset of a rupee saved is a rupee earned”

(Courtesy & thanks to our user “IamRage” for sharing this tip - read the original comment)

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I have also heard that HDFC Millenia and OneCard Credit Card Offers some reward points on loan repayments. Do comment below if in case you know more about it.

Also read:

Important ICICI Credit Card Updates