HDFC, IOB hike lending rate by up to 25 basis points

Representative image. (Shutterstock Images)

HDFC Bank and India Overseas Bank (IOB) on Monday hiked their marginal cost of funds-based lending rate (MCLR) by up to 25 basis points, making loans linked to the benchmark expensive.

The new rates of HDFC will be effective from January 7, while that of IOB from January 10.

According to the HDFC Bank website, the overnight MCLR is now 8.50 per cent from earlier 8.30 per cent, an increase of 20 basis points, while the MCLR for one month is 8.55 per cent up from 8.30 per cent, a rise of 25 basis points.

The country's largest private sector lender said that benchmark one-year MCLR is up by 25 basis points to 8.85 per cent from 8.60 per cent.

The two-year MCLR will be 8.95 per cent compared to 8.70 per cent, and the three-year MCLR will be 9.05 per cent from 8.80 per cent, up 25 basis points.

IOB on the other hand raised the benchmark rate across all tenures by 5 basis points.

The rates have been increased from 7.70 per cent to 8.45 per cent, IOB said in a regulatory filing.