HDFC and Canara Bank raise interest rates, increase in home loan-car loan EMI

HDFC Bank, the largest lender in the private sector, has given a major blow to its customers even before the RBI's credit policy was announced. HDFC Bank has raised MCLR (lending rate) by 0.35 per cent The bank has announced that the new loan rate has been implemented from June 7, 2022. This will lead to an increase in borrowers' installments now. Also, home loans, auto loans and personal loans will go up. According to the new rates announced by the bank on its website, the MCLR has increased from 7.15 per cent to 7.50 per cent. The one-month MCLR has risen to 7.55 per cent and the three-month MCLR to 7.60 per cent. Along with HDFC Bank, Canara and Karur Vaishya Bank have also increased lending rates.

HDFC Bank raises interest rates for second time in a week Earlier, on June 1, 2022, the bank had hiked the retail prime lending rate of home loans by 5 basis points. The increase in MCLR has an effect on all types of loans. The rise in MCLR has led to an increase in home, auto and all other types of loans.

Public sector Canara Bank has raised its one-year marginal cost of funds based lending rate (MCLR) by 0.05 per cent to 7.40 per cent. The bank has also increased its MCLR for a six-month period from 7.30 per cent to 7.35 per cent. Canara Bank's new lending rates are also applicable from today.