HDFC Bank MCLR Cut has brought relief for some borrowers, with the bank reducing its Marginal Cost of Funds Based Lending Rate by 5 to 15 basis points from October 7, 2026.
However, the reduction will not immediately lower EMIs for every home loan customer.
The bank has reduced MCLR across all applicable tenures.
The revised rates now range from 7.75% to 8.55%.
HDFC Bank MCLR Cut: New Rates
The overnight MCLR has been reduced to 7.80%, while the one-month rate is now 7.75%.
The three-month MCLR stands at 7.95% and the six-month rate at 8.15%.
For longer tenures, the one-year MCLR is 8.30%, the two-year rate is 8.40% and the three-year MCLR is 8.55%.
The biggest reduction has been made in the one-month MCLR, which was cut by 15 basis points.
Overnight and three-month MCLR rates have each been reduced by 10 basis points.
Which Home Loan Borrowers Will Benefit?
The MCLR reduction can benefit borrowers whose floating-rate loans are linked to the bank’s MCLR and have reached their interest-rate reset date.
This means a borrower should not assume that the EMI will fall immediately after the rate cut. The impact depends on the loan’s benchmark and reset schedule.
Borrowers whose loans are linked to another benchmark, such as the repo rate, may not get a direct benefit from this particular MCLR reduction.
What Is MCLR and How Does It Affect EMI?
MCLR is the minimum lending rate used by banks as a benchmark for certain loans. It was introduced by the Reserve Bank of India in 2016.
When MCLR changes, the interest rate on eligible floating-rate loans linked to it can also change after the applicable reset date.
A lower lending rate can reduce the interest burden and, depending on the loan terms, affect the EMI or repayment period.
The HDFC Bank MCLR Cut therefore matters mainly to borrowers whose loans are specifically linked to MCLR rather than another benchmark.
