HDFC Bank MCLR: If you are an HDFC Bank customer, this news may be significant for you. If you have a home loan or other term loan from HDFC Bank, your monthly installment (EMI) may now decrease. HDFC Bank, one of the country’s largest private sector banks, has reduced its MCLR by up to 10 basis points. The new rates are effective from November 7, 2025. This move by the bank is a relief for customers whose loans are linked to MCLR.

Which Loan Tenures Changed Interest Rates?

HDFC Bank has slightly reduced MCLR rates for loans with different tenures. The bank’s rates now range from 8.35% to 8.60%, compared to the previous range of 8.45% to 8.65%. According to the new rates, the overnight MCLR is now 8.35%, while the one-month rate is 8.35% and the three-month rate is 8.40%. The six-month rate is 8.45%, and the one-year rate is 8.50%. The interest rate on two-year loans will be 8.55% and 8.60% for three years. This change indicates that the bank has slightly reduced interest rates on almost all tenures.

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What is MCLR?

MCLR is the minimum interest rate at which a bank can lend to a customer. It can be called the bank’s base rate, which determines the interest rate charged on a loan. The Reserve Bank of India (RBI) implemented this system in 2016 to keep interest rates transparent and linked to market fluctuations. When the RBI changes its repo rate, it also impacts the MCLR. If the repo rate decreases, the bank’s cost of funds decreases, resulting in a reduction in the MCLR, which reduces customers’ EMIs.

Home Loan Customers Will Benefit

Many of HDFC Bank’s older home loans are still linked to the MCLR system. These customers will directly benefit from this rate cut. A slight reduction in EMIs is expected, ranging from a few hundred to a few thousand rupees. According to the bank’s website, home loan interest rates currently range from 7.90% to 13.20%, depending on the customer’s profile and loan type.

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Reasons for the Rate Reduction

Banking experts believe that HDFC Bank has taken this step due to the stable repo rate and increased liquidity in the market. Borrowing costs have declined in recent months, and competition to attract retail customers has increased in the banking sector. This is why banks are now offering loans at lower interest rates to both new and existing customers. This will boost demand in the home loan segment and accelerate the credit market.

Which customers will not be affected?

If your loan is linked to the repo rate or base rate, this reduction will not immediately impact your EMI. Such customers will benefit from the new rates on the next interest reset date. If desired, customers can contact their bank to opt for an MCLR-linked loan or the new interest structure.