The country’s largest private sector bank, HDFC Bank, has given relief to crores of its customers by reducing its Marginal Cost of Funds-based Lending Rate (MCLR) by 0.05 percent.
This cut has been applied to overnight, one-month, and three-month loan tenures.
Earlier, in December 2025, the Reserve Bank of India (RBI) reduced the repo rate from 5.50% to 5.25%.
After this move, many banks lowered interest rates on home loans and fixed deposits. Following this trend, HDFC Bank has now reduced its MCLR.
This is the second time HDFC Bank has reduced its MCLR after the RBI’s repo rate cut.
Who Will Benefit from This MCLR Cut?
This reduction will directly benefit customers whose loans are linked to MCLR, RLLR, or RBLR. Since home loan interest rates are connected to MCLR, a reduction in MCLR means lower home loan EMIs for eligible borrowers.
Customers with home loans or other retail loans linked to MCLR will be able to enjoy this benefit.
Details of HDFC Bank’s Latest MCLR Reduction
HDFC Bank has reduced its MCLR by 5 basis points. After this cut, the MCLR now ranges between 8.25% and 8.55%, compared to the earlier range of 8.30% to 8.60%.
What is MCLR?
MCLR stands for Marginal Cost of Funds-based Lending Rate. It is the minimum interest rate below which a bank cannot lend to its customers. Banks decide loan interest rates based on MCLR.
The RBI introduced the MCLR system in 2016 to make interest rates more transparent and ensure that customers benefit from changes in policy rates.
HDFC Bank MCLR Rates (Latest)
| Period | New MCLR – January 7, 2025 | New MCLR – December 7, 2025 |
|---|---|---|
| Overnight | 8.25% | 8.30% |
| One Month | 8.25% | 8.30% |
| Three Months | 8.30% | 8.35% |
| Six Months | 8.40% | 8.40% |
| One Year | 8.40% | 8.45% |
| Two Years | 8.50% | 8.50% |
| Three Years | 8.55% | 8.55% |
