EMIs soar: Banks don't wait for RBI, raise loan rates ahead of policy meet

Move aside Governor Das, the banks are not waiting for the RBI policy but beating the curve and raising rates. Private lender HDFC Bank has raised its marginal cost of funds-based lending rate (MCLR) on loans across all tenures by 35 basis points effective immediately. 

The hike in rates marks the second hike in just a month, earlier HDFC Bank had raised MCLR by 25 basis points on May 7, 2022. 

But some relief for home loan borrowers, it is important to note that hike in EMI outgo will impact only when the reset date of your loan arrives which is just once a year. 

The one-year MCLR, which is connected to many consumer loans, will now be 7.85 percent, the two-year MCLR will be 7.95 percent, and the three-year MCLR will be 8.05 percent.