HDFC Bank: If you have an account in HDFC Bank, then it is a matter of relief. The interest rates of the loan have been reduced by HDFC Bank. The bank has reduced the interest rate by 0.05 percent for all periods except for 2 years. Let us tell you that MCLR is directly linked to the interest rate of the loan. No bank can give a home loan or a car loan at less than MCLR rates. If the bank reduces MCLR, then the interest rates of the loan also get reduced.
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HDFC Bank reduced MCLR
HDFC Bank has reduced MCLR by 0.05 percent for all periods except for 2 years. Reducing MCLR reduces the EMI of home, car, and personal loans. These new rates will be implemented from 7 August 2025. The country’s national bank RBI, has not made any change in the repo rate.
HDFC Bank MCLR – August 2025 Period
Period New MCLR (7 August 2025) Old MCLR (7 July 2025)
Overnight 8.55% 8.60%
One month 8.55% 8.60%
Three months 8.60% 8.65%
Six months 8.70% 8.75%
1 year 8.70% 8.75%
2 years 8.75% 8.75%
3 years 8.75% 8.80%
(Source – HDFC Bank Website)
HDFC Bank’s new MCLR rates
HDFC Bank’s overnight and one-month MCLR has been reduced from 8.60 percent to 8.55 percent. The three-month rate has been reduced from 8.65 percent to 8.60 percent. There has been a 0.05 percent reduction in the MCLR for six months and one year. The MCLR for three years has been reduced from 8.80 percent to 8.75 percent.
What is the effect of increasing or decreasing MCLR on EMI?
When the bank changes the MCLR, it directly affects the loans, which have floating interest rates, such as home loans, personal loans, and car loans. If the bank increases the MCLR, then your EMI also increases because the interest rate becomes higher.
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How is MCLR decided?
To decide the MCLR, the bank decides the interest rates on deposits on the basis of the cost of repo rate, operational cost, and CRR (cash reserve ratio). When the RBI changes the repo rate, it also affects the MCLR.