Private sector lender HDFC Bank has revised its marginal cost of funds-based lending rates (MCLR), lowering the overnight lending rate by 5 basis points while increasing the rates by an equal margin across some other tenures.
The revised rates are effective from Tuesday, July 7, 2026, according to the information available on the bank’s official website. One basis point is equal to one-hundredth of a percentage point.
Last month, the private lender increased its MCLR by up to 10 basis points across different tenures following the central bank’s monetary policy decision to keep interest rates unchanged at 5.25%.
HDFC Bank’s latest lending rates
As per the revised rates, has reduced the overnight MCLR by 5 basis points to 8.05% from 8.10%. The one-month, three-month, six-month and two-year MCLR remain unchanged at 8.05%, 8.20%, 8.35% and 8.55%, respectively.
However, the bank has increased the one-year MCLR to 8.45% from 8.40% and the three-year MCLR to 8.70% from 8.65%, both by 5 basis points each.
HDFC Bank MCLR
| Tenor | Revised MCLR | Previous MCLR |
|---|---|---|
| Overnight | 8.05% | 8.10% |
| 1 month | 8.05% | 8.05% |
| 3 month | 8.20% | 8.20% |
| 6 month | 8.35% | 8.35% |
| 1 year | 8.45% | 8.40% |
| 2 year | 8.55% | 8.55% |
| 3 year | 8.70% | 8.65% |
What does this mean for borrowers?
The latest revision means HDFC Bank’s MCLR now ranges from 8.05% to 8.70%, depending on the loan tenure. While most tenures remain unchanged, borrowers with loans linked to the one-year or three-year MCLR could see an impact on their EMIs when their loan reaches its next interest rate reset date.
However, the impact depends on whether your loan is linked to the or not. A reduction in MCLR can eventually lower borrowing costs, while an increase may push up EMIs. However, the change is not immediate.
What is MCLR?
Marginal cost of funds-based lending rate is the internal benchmark set by banks to determine minimum lending rates, as mandated by the (RBI). Introduced in April 2016, MCLR replaced the older base rate system with an aim to make interest rate transmission more transparent and market-linked.
In simple terms, MCLR refers to the minimum interest rate that a lender must charge for loans. Any hike in these rates is likely increase EMI for borrowers, though the impact is not immediate. For instance, if your loan is tied to a 1-year MCLR, the revised rate will take effect only on the next reset date of your loan.
HDFC Bank’s PLR and FD rates
The bank has also reduced its Benchmark Prime Lending Rate (BPLR) to 17.20% per annum, effective June 24. Previously, the BPLR stood at 17.30% per annum.
For fixed deposits, HDFC Bank offers interest rates ranging from 2.75% to 6.50% for general customers. Senior citizens can earn between 3.25% and 7.00%, depending on the deposit tenure.