HDFC Bank has cut its Marginal Cost of Funds-based Lending Rates (MCLR) by up to 10 basis points (bps) on select tenures. The revision, effective from September 7, 2026, could offer some relief to borrowers whose loans are linked to the MCLR regime.
A basis point is one-hundredth of a percentage point. Following the latest revision, HDFC Bank’s MCLR rates range from 7.90% to 8.60%, compared with 8% to 8.65% earlier.
HDFC Bank has reduced its overnight MCLR to 7.90% from 8%. The 1-month MCLR has also been cut to 7.90% from 8%.
For the 3-month tenure, the MCLR has been reduced to 8.05% from 8.15%. The 6-month MCLR now stands at 8.25%, down from 8.30%.
The bank has also lowered the 1-year MCLR to 8.35% from 8.40%. The 2-year MCLR has been cut to 8.45% from 8.55%, while the 3-year MCLR now stands at 8.60%, compared with 8.65% earlier.
Overall, HDFC Bank has reduced its MCLR by 5 to 10 bps across all the listed tenures.
MCLR is the minimum lending rate that a bank can charge for loans linked to this benchmark. It was introduced by the Reserve Bank of India (RBI) in 2016.
The MCLR is linked to the bank’s cost of raising funds and other factors. Loans linked to MCLR are reset at specified intervals, depending on the terms of the loan.
This means a change in the MCLR does not necessarily result in an immediate change in the interest rate or EMI for every borrower. The impact depends on the loan’s reset date and the benchmark to which it is linked.
For existing borrowers with loans linked to HDFC Bank’s MCLR, the reduction could eventually translate into a lower interest burden when their loan rate resets.
However, borrowers should not expect their EMI to fall immediately simply because the bank has reduced its MCLR. The actual impact depends on the loan agreement, reset frequency and the spread charged by the bank.
For borrowers whose loans are not linked to MCLR, the latest change may have no direct impact on their interest rate.
Those planning to take a new loan should also remember that the MCLR is only one part of the pricing of a loan. The final interest rate can vary depending on the type of loan and the borrower’s profile.
Meanwhile, HDFC Bank’s current base rate stands at 8.70%, effective from June 24, 2026.
The bank’s Benchmark Prime Lending Rate (BPLR) is 17.20% per annum, also effective from June 24, 2026. It was earlier 17.30%.
It is currently offering fixed deposit interest rates ranging from 2.75% to 6.50% for general customers.
For senior citizens, the FD rates range from 3.25% to 7%.
The latest MCLR revision is separate from the bank’s fixed deposit rates and does not automatically mean that FD interest rates will change.