HDFC Bank: Big news for HDFC Bank customers. If you have a mortgage, auto loan, or personal loan with HDFC Bank, there’s some important information for you. HDFC Bank, the largest private lender in the country, has raised its marginal cost of funds-based lending rate (MCLR). The bank has adjusted MCLR rates upward by 5 to 10 basis points (bps) across different tenors. These new rates will take effect on June 8, 2026. This change could directly affect customers whose loans are tied to MCLR-based interest rates, potentially leading to higher EMIs or an extension of the loan tenure.
MCLR represents the minimum interest rate at which banks lend to their customers. An increase in MCLR makes floating-rate loans more costly. Even though the Reserve Bank of India (RBI) maintained the repo rate at 5.25% during its latest monetary policy review, HDFC Bank has opted to raise its MCLR due to rising internal funding costs.
According to the updated rates, the overnight MCLR has gone up from 8.05% to 8.10%. The 3-month MCLR has risen from 8.15% to 8.20%, and the 6-month MCLR has increased from 8.30% to 8.35%. The 1-year MCLR, which serves as the benchmark for most home and retail loans, has been raised from 8.35% to 8.40%. The most significant increase is seen in the 2-year MCLR, which has jumped from 8.45% to 8.55%. The 3-year MCLR has also gone up from 8.60% to 8.65%. The only rate that has remained the same is the 1-month MCLR, which stays at 8.05%.
The new MCLR rates from the bank are: Overnight 8.10%, 1-month 8.05%, 3-month 8.20%, 6-month 8.35%, 1-year 8.40%, 2-year 8.55%, and 3-year 8.65%. HDFC Bank’s base rate continues to be at 8.80%, with its benchmark prime lending rate (BPLR) at 17.30%.
This rise in interest rates will primarily affect customers whose loans are linked to the MCLR and are nearing their reset date. These customers might see a slight increase in their EMIs. While the increase isn’t substantial, it could influence the total interest payments for long-term loans such as home loans.
On the other hand, there’s some relief for fixed deposit (FD) investors, The bank is still offering interest rates ranging from 2.75% to 6.50% for general customers and 3.25% to 7% for senior citizens. Therefore, if you’re an HDFC Bank loan customer, be sure to review your next EMI and loan interest rate, as even a small rate increase can increase your expenses in the long run.
