HDFC Bank has slashed its lending rates. This brings relief to borrowers with loans linked to the bank’s Marginal Cost of Funds-based Lending Rate (MCLR). This reduction is expected to lower EMIs for customers across various loan tenures, making it easier for many to manage their monthly repayments.
HDFC Bank Cuts MCLR Across Tenures, Eases Loan Burden
HDFC Bank has reduced its Marginal Cost of Funds-based Lending Rate (MCLR) by up to 15 basis points on select tenures, providing relief to borrowers. Following the revision, the MCLR now ranges from 8.40 per cent to 8.65 per cent, down from the earlier 8.55 per cent–8.75 per cent.
The overnight rate is now 8.45 per cent, the one-month rate 8.40 per cent, and the three-month rate has fallen 15 basis points to 8.45 per cent. The six-month and one-year rates are down to 8.55 per cent, while the two-year and three-year rates now stand at 8.60 per cent and 8.65 per cent, respectively, making loans more affordable for customers across different tenures.
What Is MCLR and How It Affects Your Loans
The Marginal Cost of Funds-based Lending Rate (MCLR) is the minimum interest rate a bank or financial institution can charge on a loan. It essentially sets the floor for loan interest rates, ensuring borrowers don’t pay less than this benchmark unless specified by the Reserve Bank of India (RBI). Introduced in 2016, MCLR helps determine the interest on most home, personal, and business loans, directly affecting your EMIs.
HDFC Bank Base Rate and Benchmark PLR: Key Points
Current Base Rate: 8.90 per cent (effective from September 19, 2025)
Benchmark PLR (BPLR): 17.40 per cent per annum (effective from September 19, 2025)
These rates serve as reference points for various loans and lending products offered by HDFC Bank.
HDFC Bank Fixed Deposit Interest Rates: Key Details
HDFC Bank offers fixed deposit interest rates ranging from 2.75 per cent to 6.60 per cent for general customers and 3.25 per cent to 7.10 per cent for senior citizens on deposits below Rs 3 crore. The highest rates of 6.60 per cent for general investors and 7.10 per cent for senior citizens are available for FDs with a tenure of 18 months to less than 21 months. These rates have been effective since June 25, 2025.
HDFC Bank Home Loan Interest Rates: What You Need to Know
HDFC Bank’s home loan rates are linked to the Repo Rate, helping determine the interest you pay on your loan. As of October 7, 2025, special home loan rates for salaried and self-employed individuals (both professional and non-professional) range from 7.90 per cent to 13.20 per cent, offering borrowers options based on their profile and loan type.
Impact of HDFC Bank’s MCLR Cut: What It Means for Borrowers and Savers
By reducing its MCLR rates, HDFC Bank has eased the financial load on borrowers, especially those with floating-rate loans. This means EMIs on home and personal loans could become more affordable. The move also reflects how banks adjust lending rates in response to economic conditions and monetary policy. For borrowers, it’s a chance to save on interest, while savers can continue to benefit from the bank’s fixed deposit rates, which remain a safe and attractive option.
