HDFC Bank has changed its loan interest rates, bringing both relief and concern for borrowers. While some customers may see lower loan costs, others could end up paying higher EMIs.
The bank has revised its Marginal Cost of Funds Based Lending Rate (MCLR). The biggest change is in the 3-year MCLR, which has been increased by 0.05% (5 basis points).
This could affect customers whose home loans or long-term loans are linked to this rate.
Current Date & Time (IST): May 8, 2026, 7:50 PM IST
3-Year Loans Become More Expensive
HDFC Bank has increased the 3-year MCLR from 8.55% to 8.60%. Because of this, customers with loans linked to the 3-year MCLR may have to pay higher EMIs in the coming months.
At the same time, the bank has reduced some short-term MCLR rates by 0.05%, which may benefit customers with short-duration loans.
Latest HDFC Bank MCLR Rates
| Loan Tenure | Old Rate | New Rate | Change |
|---|---|---|---|
| Overnight / 1 Month | 8.10% | 8.05% | Cheaper by 0.05% |
| 3 Months | 8.20% | 8.15% | Cheaper by 0.05% |
| 6 Months | 8.35% | 8.30% | Cheaper by 0.05% |
| 1 Year | 8.35% | No Change | Stable |
| 2 Years | 8.45% | No Change | Stable |
| 3 Years | 8.55% | 8.60% | Costlier by 0.05% |
Who Will Not Be Affected?
Customers whose home loans are linked to the 1-year MCLR will not see any EMI change. This is because the bank has kept the 1-year MCLR unchanged at 8.35%.
Similarly, the 2-year MCLR remains steady at 8.45%.
If your loan has a fixed interest rate, these MCLR changes will not impact your EMI at all.
Meanwhile, HDFC Bank’s personal loan interest rates for new customers currently start from 10.9%.
What is MCLR and Why Does It Matter?
MCLR stands for Marginal Cost of Funds Based Lending Rate. It is the minimum interest rate below which banks cannot lend money.
Whenever a bank changes its MCLR, loan interest rates linked to it also change. This directly impacts EMIs for borrowers.
The Reserve Bank of India introduced the MCLR system in 2016 to make loan pricing more transparent and ensure customers benefit when interest rates fall.
Since October 2019, most new loans have been linked to the External Benchmark Lending Rate (EBLR), which is directly connected to the RBI repo rate.
