After SBI, HDFC Bank interest rate cut; Joy for loan-takers, home, other loans to become cheaper

Following the footsteps of SBI (State Bank of India), HDFC Bank, India's largest private sector bank, has also cut its interest rate (Marginal Cost-based Lending Rates - MCLR) by up to 0.15 per cent across all tenures. This HDFC Bank rate cut has come immediately after the SBI interest rate (check SBI online at onlinesbi.com) was slashed by 10 bps on December 9th. As a result of this, HDFC Bank MCLR cut by 15 bps, home loans, personal loans and all other loans at the bank would fall by the same amount leading to lowering of loan applicants' EMIs. In the statement issued by the HDFC Bank, it has been cleared that the new HDFC Bank loan rates will be applicable from 7th December 2019.

HDFC Bank interest rate for 1 year tenure has now come down at 8.15 per cent from 8.30 per cent. The HDFC Bank MCLR for the overnight tenure has come down to 7.8 per cent from 7.95 per cent while the 1 month tenure has been brought down from 8 per cent to 7.85 per cent. The 3 month tenure has now reduced from 8.05 per cent to 7.9 per cent and the 6 month tenure will now shrink to 8.0 per cent instead of 8.10 per cent.

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HDFC Bank's interest rate for the 2 year and 3 year tenures has been brought down from 8.4 per cent to 8.25 per cent and from 8.5 per cent to 8.35 per cent respectively. 

On December 9, India's largest commercial bank SBI had reduced its interest rate by 10 bps after the RBI Monetary Policy Meeting on Friday. In that RBI MPC meeting, Governor Shaktikanta Das had categorically said that the Apex Bank was in no hurry to cut down interest rates.