If you have a home loan, car loan, or personal loan from HDFC Bank, there is an important update for you.
The country’s largest private bank has increased its Marginal Cost of Funds-Based Lending Rate (MCLR), which could make some loans slightly more expensive.
The revised rates came into effect on June 8, 2026. Customers whose loans are linked to MCLR may see a small increase in their EMIs or a longer loan repayment period.
What Is MCLR and Why Does It Matter?
MCLR is the minimum interest rate at which banks lend money to customers. When this rate goes up, loans linked to MCLR usually become costlier.
Interestingly, this increase comes even though the Reserve Bank of India (RBI) recently kept the repo rate unchanged at 5.25%. HDFC Bank said the revision is based on its own funding costs.
For borrowers, this means future loan repayments could become slightly more expensive, especially if their loan reset date is approaching.
HDFC Bank’s New MCLR Rates
HDFC Bank has increased most of its MCLR rates by 5 to 10 basis points (bps).
| Tenor | New Rate | Previous Rate | Change |
|---|---|---|---|
| Overnight | 8.10% | 8.05% | +5 bps |
| 1 Month | 8.05% | 8.05% | No Change |
| 3 Months | 8.20% | 8.15% | +5 bps |
| 6 Months | 8.35% | 8.30% | +5 bps |
| 1 Year | 8.40% | 8.35% | +5 bps |
| 2 Years | 8.55% | 8.45% | +10 bps |
| 3 Years | 8.65% | 8.60% | +5 bps |
The biggest increase has been seen in the 2-year MCLR, which has risen by 10 basis points.
The 1-year MCLR, commonly used as the benchmark for home loans and many retail loans, has increased to 8.40%.
Who Will Be Affected the Most?
The impact will mainly be felt by borrowers whose loans are directly linked to MCLR and whose interest rate reset date is near.
Although the increase is small, even a slight rise in interest rates can increase the total interest paid over the life of a long-term loan, especially a home loan.
Because of this, customers should check their upcoming EMI schedules and loan statements to understand how the new rates may affect them.
Good News for Fixed Deposit Investors
While loan borrowers may face higher costs, fixed deposit (FD) investors can still earn attractive returns from HDFC Bank.
The bank currently offers FD interest rates ranging from 2.75% to 6.50% for regular customers. Senior citizens can earn between 3.25% and 7.00%, depending on the deposit tenure.
The highest FD rate of 7% for senior citizens is available on selected longer-duration deposits.
HDFC Bank’s base rate remains unchanged at 8.80%, while its Benchmark Prime Lending Rate (BPLR) continues at 17.30%.
For loan customers, keeping an eye on upcoming EMI changes is important, as even a small rise in interest rates can increase borrowing costs over time.
