If you are one of the crores of customers of HDFC Bank and you have taken a loan from the bank, then this news will definitely make you happy! The country’s largest private bank, HDFC Bank, has cut its MCLR (Marginal Cost of Funds-based lending rates) rates. It will have a direct and big impact on your pocket-the monthly installment (EMI) of your home, car, personal or any MCLR-linked loan will be reduced a bit!

What is this good news?

HDFC Bank has cut MCLR rates from 5 to 10 basis points (ie 0.05% to 0.10%). These new rates have been implemented since May 7, 2024. Now you will wonder what will be the effect on you?

Actually, MCLR is the minimum interest rate on which banks give loans. Most personal loans, home loans, and car loans in India are connected to this MCLR rate. When the MCLR decreases, the interest rates of all the loans associated with it also decrease, and your EMI burden also decreases.

Who will benefit?

• Current Customer: If you have taken a home loan, car loan, personal loan or education loan from HDFC Bank, whose interest rates are connected to MCLR (old loans are often MCLR-Linked), then now your EMI will be reduced directly. This relief is for millions of customers who pay loans every month.

• New customers: Even if you are thinking of taking a new home loan or car loan from HDFC Bank, you will still get the benefit of this deduction. Now you will get a loan at a slightly lower interest rate before, which will reduce the cost of your total debt.

This small cut can also save you a significant savings in a long time. For example, a home loan is a long -term debt. In such a situation, every month the shortage of even a small reduction in your total amount is cut.

So, this is really a good and relief news for millions of HDFC Bank customers! You can feel this change in your next EMI.