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

HDFC Bank, Canara 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. Country's largest private sector lender HDFC Bank has increased the marginal cost of funds based lending rate (MCLR) by 0.25 per cent to 7.70 per cent with effect from May 7, 2022. HDFC Bank said on its website that the one-year MCLR is 7.50 per cent. The two-year and three-year MCLR for HDFC Bank customers has gone up to 7.60 per cent and 7.70 per cent, respectively.

Further, Canara Bank said that it has increased the Repo Linked Lending Rate (RLLR) with effect from May 7, 2022 to 7.30 per cent. The lender has also revised the MCLR based lending rates, bringing down the one-year rate to 7.35 per cent. These MCLRs will be effective till further review.

Pune-based Bank of Maharashtra also said that it has increased the MCLR by 0.15 per cent. "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 been 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 per cent from 7.15 per cent 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 per cent to 4.40 per cent 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.