HDFC Bank has given a gift to its millions of customers. The bank has reduced home loan rates. This means your home loan EMI may decrease in the future. HDFC Bank has reduced its marginal cost of funds-based lending rate (MCLR) for a limited period.
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HDFC Bank: HDFC Bank has given a gift to its millions of customers. The bank has reduced home loan rates. This means your home loan EMI may decrease in the future. HDFC Bank has reduced its Marginal Cost of Funds Based Lending Rate (MCLR) for some periods. The bank has reduced the interest rate by 10 basis points, or up to 0.10%, on select tenures. The new rates are effective from March 7, 2026. After this change, the bank’s MCLR rates now range between 8.15% and 8.55%, compared to the previous range of 8.25% and 8.60%.
New MCLR Rates
According to HDFC Bank’s website, the MCLR for overnight and 1-month periods is now 8.15%. For 3-month periods, it has been reduced to 8.25%. For 6-month and 1-year periods, the MCLR is 8.35%. Apart from this, the rate of 8.45% will be applicable for 2 years and 8.55% for 3 years.
What will be the impact on borrowers?
This reduction can benefit those customers whose home loans, auto loans, or personal loans are linked to the MCLR. The rate reduction may slightly reduce the EMI of such loans. However, this benefit is not immediately available. This change is implemented when the loan’s interest reset date arrives.
Customers Who Will Not Be Affected
People whose loans are linked to an external benchmark, such as the RBI’s repo rate, will not be affected by this change. Their EMIs are determined based on changes in the repo rate.
What is MCLR?
MCLR is the minimum interest rate at which banks offer most loans. The Reserve Bank of India (RBI) implemented it in 2016 to ensure that the benefits of policy rate changes reach customers quickly. While many new loans are now linked to external benchmarks like the repo rate, many older home loans, car loans, and personal loans are still determined based on the MCLR. Therefore, the change in MCLR may affect such old loan takers.
