If you are going to buy a house soon, then there is great news for you. The country’s largest private sector bank, HDFC Bank, has reduced the interest rates on loans. Customers can take advantage of this. The bank has reduced the interest rates by 0.05 per cent. If you are going to apply for a home loan in HDFC Bank, then you will get the benefit of the reduced interest rate.
In a media report, it has been reported that the bank has reduced the interest rates on loans for all periods except for a period of 2 years. HDFC Bank has reduced the marginal cost of funds-based lending rate by 0.05 per cent on all periods except for 2 years. Let us tell you that due to the reduction in MCLR, the EMI of home, car and personal loans is reduced. RBI has not made any change in the repo rate recently. The new rates in the bank have come into effect from 7 August 2025.
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HDFC Bank’s new MCLR rates
- HDFC Bank’s overnight and one-month MCLR have come down from 8.60 per cent to 8.55 per cent.
- The three-month rate has come down from 8.65 per cent to 8.60 per cent.
- The six-month and one-year MCLR have come down by 0.05 per cent.
- The bank has reduced the three-year MCLR from 8.80 per cent to 8.75 per cent.
What are the MCLR rates?
In the Marginal Cost of Funds Based Lending Rate, the bank determines its minimum interest rate by considering factors such as cost of funds, operating costs and profit margin. However, when the RBI changes the repo rate, it also affects the MCLR.
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Let us tell you that MCLR is directly linked to the loan rates. As per RBI’s instructions, the bank cannot give any loan, be it a home loan or a car loan, at rates lower than MCLR. If the bank reduces the MCLR, then the loan rates will automatically decrease. If the bank increases the MCLR, then your EMI also increases. Home loans, personal loans and car loans come under its purview.