Private sector lender HDFC Bank has revised its Marginal Cost of Funds Based Lending Rate (MCLR) for select loan tenures.
The new rates came into effect on July 7, 2026.
The bank has reduced the overnight MCLR by 5 basis points (0.05%), while keeping most other short-term lending rates unchanged.
The revised MCLR can impact the interest rates on loans linked to this benchmark.
HDFC Bank’s Latest MCLR Rates
Here are the revised MCLR rates effective from July 7, 2026:
| Tenure | MCLR Rate |
|---|---|
| Overnight | 8.05% |
| 1 Month | 8.05% |
| 3 Months | 8.20% |
| 6 Months | 8.35% |
| 1 Year | 8.45% |
| 2 Years | 8.55% |
| 3 Years | 8.70% |
While the overnight MCLR has been reduced, the 1-month, 3-month, 6-month, and 2-year MCLR rates remain unchanged.
The 1-year and 3-year rates also continue at their existing levels.
What Is MCLR and Why Does It Matter?
Marginal Cost of Funds Based Lending Rate (MCLR) is the minimum interest rate at which banks can lend money to customers.
Introduced by the Reserve Bank of India (RBI) in 2016, MCLR replaced the older base rate system.
It is used to determine interest rates on various loans, including home loans, personal loans, and business loans.
If your loan is linked to MCLR, any change in these rates could affect the interest you pay and your monthly EMI, depending on your loan’s reset date.
RBI Kept Repo Rate Unchanged
Last month, the Reserve Bank of India (RBI) decided to keep the repo rate unchanged at 5.25% during its Monetary Policy Committee (MPC) meeting.
According to RBI Governor Sanjay Malhotra, the decision was taken after reviewing the country’s economic and financial conditions.
The central bank also maintained its neutral policy stance, citing uncertainty caused by geopolitical tensions in West Asia and rising global crude oil prices.
The current RBI policy rates are:
Repo Rate: 5.25%
Reverse Repo Rate: 3.35%
Standing Deposit Facility (SDF): 3.25%
Marginal Standing Facility (MSF): 5.50%
Bank Rate: 5.50%
Experts had largely expected the RBI to keep interest rates unchanged due to global economic uncertainties and inflation-related concerns.
