Canara Bank, HDFC Bank, And BoM Hike Lending Rates

Canara Bank, HDFC Bank, and BoM hike lending rates; Auto, home, and personal loans will be expensive.

HDFC Bank, Canara Bank, Bank of Maharashtra, and Karur Vysya Bank on Monday said they have revised their lending rates based on marginal cost of funds and repo rate.

The country’s largest private sector lender HDFC Bank has increased the marginal cost of funds-based lending rate (MCLR) by 0.25 percent to 7.70 percent with effect from May 7, 2022.

HDFC Bank said on its website that the one-year MCLR is 7.50 percent. The two-year and three-year MCLR for HDFC Bank customers has gone up to 7.60 percent and 7.70 percent, respectively.

Further, Canara Bank said that it has increased the Repo Linked Lending Rate (RLLR) with effect from May 7, 2022, to 7.30 percent.

The lender has also revised the MCLR-based lending rates, bringing down the one-year rate to 7.35 percent. These MCLRs will be effective till further review.

Pune-based Bank of Maharashtra also said that it has increased the MCLR by 0.15 percent.

“This is to inform that the Bank has reviewed the lending rate based on Marginal Cost of Funds with effect from May 7, 2022,” Bank of Maharashtra (BOM) said in a regulatory filing.

Bank of Maharashtra said that the one-year MCLR has increased from 7.25 percent to 7.40 percent.

At the same time, private sector lender Karur Vysya Bank said in a separate filing that it has revised the bank’s external benchmark rate (repo linked (EBR-R)) to 7.45 percent from 7.15 percent with effect from May 9, 2022.

Several banks have increased the repo rate-linked lending rates after the RBI raised the repo rate by 0.40 percent to 4.40 percent last week.

An increase in the external benchmark or repo-linked lending rate makes most consumer loans such as auto, home, and personal loans costlier.