On Friday, HDFC Bank cut its marginal-cost based lending rate (MCLR) on loans across tenors by 10 basis points with effect from 7 August 2020, the private lender's website showed.
The bank had announced a similar rate cut last month as well. The move comes just a day after the Reserve Bank of India, after its Monetary Policy Committee meeting, decided to keep its repo rates unchanged at 4 percent.
After the latest revision, HDFC Bank's one-year MCLR was reduced to 7.35 percent.
|Tenor||MCLR in %|
Earlier this week, ICICI Bank also announced 10 basis points cut in its lending rates. The private lender cut its one-year MCLR will come down to 7.45 percent and the overnight MCLR will be 7.25 percent. One-year MCLR is the basis for a majority of retail products like home loans and will cause the EMI out-go of customers on such loans to fall.