The country’s largest private sector bank, HDFC Bank, has given good news to its crores of customers just before Navratri.
The bank has reduced its loan interest rates by lowering the MCLR (Marginal Cost of Funds Based Lending Rate) by 0.05% on selected tenures.
Since MCLR is directly linked to loan rates, banks cannot give loans at a rate lower than MCLR.
This means that whenever MCLR decreases, loan rates also go down, giving customers direct relief in their EMIs on home loans, car loans, and personal loans.
Updated HDFC Bank MCLR Rates (Effective from 8 September 2025)
HDFC Bank has not changed the overnight, one-month, three-month, and three-year MCLR. The reduction has been made only in six-month, one-year, and two-year MCLR.
| Period | New MCLR (8 Sept 2025) | Old MCLR (7 Aug 2025) |
|---|---|---|
| Overnight | 8.55% | 8.55% |
| One Month | 8.55% | 8.55% |
| Three Months | 8.60% | 8.60% |
| Six Months | 8.65% | 8.70% |
| One Year | 8.65% | 8.70% |
| Two Years | 8.70% | 8.75% |
| Three Years | 8.75% | 8.75% |
So, the six-month rate has been reduced from 8.70% to 8.65%, the one-year rate from 8.70% to 8.65%,
and the two-year rate from 8.75% to 8.70%. The three-year MCLR remains unchanged.
What Does a Fall in MCLR Mean?
Whenever MCLR decreases, it directly affects loans with floating interest rates such as home loans, car loans, and personal loans.
In such cases, your EMI amount reduces. On the other hand, if MCLR increases, then your EMI or loan repayment period increases because of higher interest.
How Is MCLR Decided?
MCLR is fixed by banks based on:
Repo rate (set by the RBI)
Bank’s operational cost
CRR (Cash Reserve Ratio)
Whenever the RBI changes the repo rate, it has a direct impact on the MCLR, and consequently, on loan interest rates.
