For HDFC Bank customers, interest rate on home, car, personal and other loans will become costlier as the country's largest private sector lender has raised its marginal cost of funds-based lending rate (MCLR) across all tenures by 20 basis points (0.20%). This is effective 7 July.

Borrowers will see their equated monthly instalments (EMIs) rise for different types of loans.

This is the bank’s third interest rate hike since May, lifting the MCLR by 0.80% during this period. The Reserve Bank of India (RBI) raised the repo rate by 90 basis points in two tranches since 4 May as part of its tightening policy to tame rising inflation.

HDFC Bank said the one-year MCLR, to which many consumer loans are pegged, will now be 8.05% as against 7.85% earlier.

While the two-year MCLR will be 8.15%, the three-year MCLR will be 8.25%, as per the bank's website. 

The overnight MCLR will be 7.70%, up from 7.50%, while the one-month MCLR is 7.75%. The three-month and six-month MCLRs are 7.80% and 7.90%, respectively.

For existing borrowers of home, car, personal and other loans, the bank will increase the interest rate only when the reset date of their loans arrive. If the home loan borrower’s reset date is in August, then the EMI hike will be from August.