HDFC BANK REVISES LENDING RATES; HERE'S HOW YOUR EMI WILL CHANGE

HDFC Bank has lowered its Marginal Cost of Funds-based Lending Rates (MCLR) on certain tenures by up to 5 basis points (bps), effective April 7, 2026. A basis point represents one-hundredth of a percentage point. Borrowers with loans tied to MCLR are expected to benefit directly from this revision, according to details posted on the bank’s official website. Following the update, HDFC Bank’s MCLR now ranges between 8.10 per cent and 8.55 per cent, down from the previous 8.15 per cent to 8.55 per cent, depending on the tenure of the loan.

The revision primarily affects short-term tenors, leaving most medium- and long-term MCLR rates unchanged. Specifically: Overnight and one-month MCLR rates have been reduced from 8.15 per cent to 8.10 per cent. The three-month MCLR has dropped from 8.25 per cent to 8.20 per cent.

Meanwhile, the six-month, one-year, two-year, and three-year MCLR rates remain at 8.35 per cent, 8.35 per cent, 8.45 per cent, and 8.55 per cent, respectively.

Tenor Old MCLR New MCLR Change

Overnight 8.15 per cent 8.10 per cent 0.05 per cent

1 Month 8.15 per cent 8.10 per cent 0.05 per cent

3 Month 8.25 per cent 8.20 per cent 0.05 per cent

6 Month 8.35 per cent 8.35 per cent No change

1 Year 8.35 per cent 8.35 per cent No change

2 Year 8.45 per cent 8.45 per cent No change

3 Year 8.55 per cent 8.55 per cent No change

This will reduce the EMI for the users.

Understanding MCLR And Other Lending Benchmarks

MCLR, or Marginal Cost of Funds-based Lending Rate, is the minimum rate a bank can charge on loans. It sets a floor for interest rates, ensuring borrowers are not charged below a specified limit unless the RBI allows otherwise. Introduced in 2016, this benchmark has become a critical reference for home, personal, and business loans.

HDFC Bank’s base rate currently stands at 8.80 per cent (effective December 26, 2025), while its benchmark PLR (BPLR) is 17.30 per cent p.a. Fixed deposit interest rates have also seen adjustments, with general customers now earning 3.25 per cent–7 per cent and senior citizens 3.25 per cent–7 per cent, reflecting a 10 bps hike in select tenures.

With lower short-term MCLR rates, borrowers with floating-rate loans linked to these tenors will see marginal reductions in interest costs. This move can help ease repayment burdens for those with loans tied to overnight, one-month, or three-month MCLR, particularly for personal and business financing.

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2026-04-07T10:13:19Z