The country’s largest private sector lender HDFC Bank has hiked its marginal cost of funds-based lending rates (MCLR) by 35 basis points across all tenors.

The new rates are effective from Tuesday and comes just ahead of the Reserve Bank of India’s monetary policy announcement on Wednesday when another round of rate hike is expected.

According to HDFC Bank’s website, overnight MCLR is now at 7.5 per cent while the one year MCLR is at 7.85 per cent. The three-year MCLR stands revised to 8.05 per cent.

The increased rate will lead to costlier EMIs for borrowers.