HDFC Bank: Good news for bank customers. HDFC Bank’s recent announcement involves a reduction in its MCLR, with changes effective from October 7, 2026. This adjustment ranges from 5 to 15 basis points across all tenors, potentially leading to lower interest rates and EMIs for some borrowers. However, not all home loan recipients will experience an immediate benefit. Let’s delve into the bank’s rate modifications and how they might influence your EMI payments.
HDFC Bank’s MCLR Reduction
HDFC Bank has decreased its MCLR (Marginal Cost of Funds Based Lending Rate) in October, with the new rates ranging from 7.75% to 8.55% for various tenors. Notably, the most substantial reduction of 15 basis points applies to the 1-month MCLR, while the overnight and 3-month MCLRs have each seen a 10 basis points decrease.
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Updated Rates:
1. Overnight MCLR – 7.80%
2. 1-month MCLR – 7.75%
3. 3-month MCLR – 7.95%
4. 6-month MCLR – 8.15%
5. 1-year MCLR – 8.30%
6. 2-year MCLR – 8.40%
7. 3-year MCLR – 8.55%
What Are the Previous Rates?
In September 2026, HDFC Bank’s MCLR varied from 7.90% to 8.60%, indicating a reduction in rates for all tenors. For instance, the 1-year MCLR has dropped from 8.35% to 8.30%, the 2-year MCLR from 8.45% to 8.40%, and the 3-year MCLR from 8.60% to 8.55%.
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Immediate Impact on Home Loan EMIs
While the MCLR reduction is significant, it won’t automatically lead to a decrease in EMIs for all borrowers. This adjustment will benefit only those customers whose loans are MCLR-linked and whose interest rate reset date has passed. If your loan is tied to a different benchmark, like the repo rate, the MCLR reduction by HDFC Bank may not directly affect your loan terms.
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MCLR represents the minimum interest rate that a bank typically sets for loan interest rates. Introduced by the RBI in 2016, alterations in the MCLR can influence interest rates on connected floating-rate loans.