HDFC Bank customers with certain home loans, personal loans and other loans may get some relief.
The bank has reduced its Marginal Cost of Funds-Based Lending Rate (MCLR) by 5 to 10 basis points across different tenures.
The new rates are effective from September 7, 2026. After the revision, HDFC Bank’s MCLR now ranges from 7.90% to 8.60%, compared with 8.00% to 8.65% earlier.
However, the benefit will apply only to borrowers whose loan interest rates are linked to MCLR.
How Much Has HDFC Bank Cut MCLR?
HDFC Bank has reduced its overnight MCLR from 8.00% to 7.90%. The one-month rate has also fallen from 8.00% to 7.90%.
The three-month MCLR has been reduced from 8.15% to 8.05%, while the six-month rate has dropped from 8.30% to 8.25%.
For one-year loans, the MCLR is now 8.35%, down from 8.40%. The two-year MCLR has been cut from 8.55% to 8.45%, while the three-year rate has fallen from 8.65% to 8.60%.
HDFC Bank MCLR Rates for September 2026
| Tenure | New Rate | Previous Rate | Cut |
|---|---|---|---|
| Overnight | 7.90% | 8.00% | 0.10% |
| 1 Month | 7.90% | 8.00% | 0.10% |
| 3 Months | 8.05% | 8.15% | 0.10% |
| 6 Months | 8.25% | 8.30% | 0.05% |
| 1 Year | 8.35% | 8.40% | 0.05% |
| 2 Years | 8.45% | 8.55% | 0.10% |
| 3 Years | 8.60% | 8.65% | 0.05% |
The biggest cut of 0.10 percentage points has been made for the overnight, one-month, three-month and two-year tenures.
What Is MCLR?
MCLR stands for Marginal Cost of Funds-Based Lending Rate. In simple terms, it is a benchmark rate used by banks to decide interest rates on certain loans.
The Reserve Bank of India introduced the MCLR system in April 2016. A borrower’s final loan rate can be higher than the MCLR because it also depends on factors such as the type of loan, the bank’s spread and customer-specific terms.
Will Your Loan EMI Come Down?
A lower MCLR can reduce the interest burden for borrowers with MCLR-linked loans. However, the EMI may not fall immediately after the rate cut.
The actual benefit depends on the loan’s reset date and terms. When the loan reaches its next interest-rate reset date, the revised MCLR may be applied.
HDFC Bank’s base rate is currently 8.70%, effective from June 24, 2026, while its Benchmark Prime Lending Rate (BPLR) is 17.20% per year.
The MCLR cut is positive news for eligible borrowers, but customers should check whether their loan is linked to MCLR and when the next rate reset is due to understand how much they may save.
