HDFC Bank Cuts MCLR on Some Tenures: Are Loans Set to Get Cheaper?
HDFC Bank has revised its Marginal Cost of Funds-Based Lending Rate (MCLR), bringing mixed news for borrowers. While some short-term lending rates have been trimmed by up to 5 basis points, the 3-year MCLR has been increased by 5 basis points. The revised rates came into effect on May 7, 2026.
For borrowers with loans linked to MCLR, this update could slightly change monthly EMIs depending on the loan tenure.
HDFC Bank’s Latest MCLR Rates
The bank’s revised MCLR now ranges from 8.05% to 8.60%, compared with the earlier range of 8.10% to 8.55%.
New MCLR Rates by Tenure
Which Borrowers Benefit?
Borrowers whose home, car, or personal loans are linked to short-term MCLR tenures may see a small reduction in their interest rate. This could result in slightly lower EMIs or a shorter repayment period.
However, customers with loans tied to the 3-year MCLR may see a marginal increase in borrowing costs.
What Is MCLR?
MCLR, or Marginal Cost of Funds-Based Lending Rate, is the minimum rate at which banks can lend money, except in certain special cases. Introduced by the Reserve Bank of India in 2016, MCLR was designed to make loan pricing more transparent and ensure changes in policy rates are passed on to customers more efficiently.
Why MCLR Matters
If your loan is linked to MCLR, any revision in these benchmark rates directly affects your interest rate. Even a small change of 5 basis points (0.05%) can alter your EMI over time.
Should You Expect a Big EMI Drop?
Not really. The latest cut is modest, so the impact on EMIs will be limited. Still, any reduction is welcome for borrowers looking to ease their repayment burden, especially on large loans such as home loans.
HDFC Bank’s latest MCLR revision offers a slight benefit to borrowers with loans linked to shorter tenures, while long-term borrowers linked to the 3-year benchmark may see rates edge up. If you have a floating-rate loan, it’s worth checking which MCLR tenure your loan follows to understand how this change affects your EMI.
Disclaimer: This information is provided for general informational purposes only and is based on publicly available online sources. Interest rates and loan terms may change from time to time. NewsPoint does not encourage borrowing or taking loans. Readers are advised to consult a qualified financial advisor and carefully assess their financial situation before making any borrowing decision.
For borrowers with loans linked to MCLR, this update could slightly change monthly EMIs depending on the loan tenure.
HDFC Bank’s Latest MCLR Rates
The bank’s revised MCLR now ranges from 8.05% to 8.60%, compared with the earlier range of 8.10% to 8.55%.New MCLR Rates by Tenure
- Overnight: 8.05%
- One Month: 8.05%
- Three Months: 8.15%
- Six Months: 8.30%
- One Year: 8.35% (unchanged)
- Two Years: 8.45% (unchanged)
- Three Years: 8.60% (up by 5 basis points)
Which Borrowers Benefit?
Borrowers whose home, car, or personal loans are linked to short-term MCLR tenures may see a small reduction in their interest rate. This could result in slightly lower EMIs or a shorter repayment period. However, customers with loans tied to the 3-year MCLR may see a marginal increase in borrowing costs.
What Is MCLR?
MCLR, or Marginal Cost of Funds-Based Lending Rate, is the minimum rate at which banks can lend money, except in certain special cases. Introduced by the Reserve Bank of India in 2016, MCLR was designed to make loan pricing more transparent and ensure changes in policy rates are passed on to customers more efficiently. Why MCLR Matters
If your loan is linked to MCLR, any revision in these benchmark rates directly affects your interest rate. Even a small change of 5 basis points (0.05%) can alter your EMI over time. Should You Expect a Big EMI Drop?
Not really. The latest cut is modest, so the impact on EMIs will be limited. Still, any reduction is welcome for borrowers looking to ease their repayment burden, especially on large loans such as home loans. HDFC Bank’s latest MCLR revision offers a slight benefit to borrowers with loans linked to shorter tenures, while long-term borrowers linked to the 3-year benchmark may see rates edge up. If you have a floating-rate loan, it’s worth checking which MCLR tenure your loan follows to understand how this change affects your EMI.
Disclaimer: This information is provided for general informational purposes only and is based on publicly available online sources. Interest rates and loan terms may change from time to time. NewsPoint does not encourage borrowing or taking loans. Readers are advised to consult a qualified financial advisor and carefully assess their financial situation before making any borrowing decision.
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