During the Corona period, the country’s largest bank gave customers a big reduction in loan rates


GSTV

Amid the coronavirus epidemic crisis, HDFC Bank, the country’s largest private bank, has made a big announcement for customers. HDFC The bank has reduced its base rate from 0.55 per cent to 7.55 per cent. This rate has been in effect since 11 September. After this announcement, the loan based on the base rate has become cheaper. Let’s say the base rate is the rate below which it is called Bank loan Can’t give It is considered the minimum interest rate on a loan.

The MCLR fell to 6.55 per cent

Earlier in the day, the Central Bank of India’s principal loan marginal cost of funds was reduced to 0.05 per cent. This defect is taken for all period loans. The new rates have come into effect from Tuesday, September 15. The bank has reduced the MCLR for its one-year loans from 7.15 per cent to 7.10 per cent, a public statement from the bank said.

The MCLR fell to 6.55 per cent

Similarly, the MCLR for one-day and one-month loans has come down to 6.55 per cent. Which was earlier 6.60 per cent. The bank has also reduced the MCLR on three-month and six-month loans. The loan rates for this period will be 85.8585 and 7 per cent respectively.

What will happen now

Following this decision, the base rate loan rate will become cheaper. That means you will save 0.55% per month on your EMI.

What is the base rate, why did the bank change it

The concept of base rate was introduced in the year 2010. So that the bank can give cheap loans not only to corporates but also to retail borrowers. The base rate is the rate below which a bank loan cannot be made. It is considered to be the minimum interest rate on loans, but banks have started manipulating this rate. In the year 2015, RBI has started MCLR. Under which the bank can give loan at different rates depending on the amount and duration of the loan. The interest rate will be fixed for a fixed period of time and changes will be possible later.

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