The country’s largest private bank, HDFC Bank, has provided relief to millions of its customers by reducing its MCLR (Marginal Cost of Funds based Lending Rate) by 0.05%.
This comes after the Reserve Bank of India (RBI) recently cut the repo rate from 5.50% to 5.25%. Following this move, several major banks have started lowering their home loan rates, and HDFC Bank has now joined them.
The direct advantage of this reduction will go to customers whose loans are linked to MCLR, RLLR, or RBLR. With lower rates, borrowers can either pay a smaller EMI or shorten their loan tenure.
Details of HDFC Bank’s MCLR Reduction
HDFC Bank has reduced its MCLR by 5 basis points, bringing the new range to 8.30% – 8.55%, down from 8.35% – 8.60%. This reduction applies to home loans and other retail loans linked to the MCLR.
Following the RBI’s repo rate cut, more banks are expected to lower their benchmark loan rates in the coming days, which will further ease the financial burden on home loan borrowers.
What is MCLR?
MCLR (Marginal Cost of Funds based Lending Rate) is the minimum interest rate at which a bank can lend to a customer.
Banks set loan interest rates based on this rate. Introduced by the RBI in 2016, this system ensures transparent loan rates and benefits borrowers. Changes in RBI policies gradually affect the MCLR, impacting loan interest rates.
HDFC Bank MCLR Rates
| Period | New MCLR – Dec 7, 2025 | Old MCLR – Nov 7, 2025 |
|---|---|---|
| Overnight | 8.30% | 8.35% |
| One month | 8.30% | 8.35% |
| Three months | 8.35% | 8.40% |
| Six months | 8.40% | 8.45% |
| 1 year | 8.45% | 8.50% |
| 2 years | 8.50% | 8.55% |
| 3 years | 8.55% | 8.60% |
