HDFC Bank has reduced its Marginal Cost of Funds-based Lending Rates (MCLR) by up to 15 basis points (bps) on select loan tenures, benefiting borrowers linked to this benchmark. The new MCLR rates range from 8.45% to 8.65%, depending on the loan tenure. This reduction will lead to lower interest rates for borrowers, making loans more affordable.
The revised MCLR rates are as follows: overnight MCLR at 8.45%, one-month MCLR at 8.40%, three-month MCLR at 8.45%, six-month MCLR at 8.55%, one-year MCLR at 8.55%, two-year MCLR at 8.60%, and three-year MCLR at 8.65%. The base rate of HDFC Bank remains at 8.90% effective from September 19, 2025.
It’s worth noting that the MCLR is the minimum interest rate a financial institution needs to charge for a specific loan, and it was introduced by the Reserve Bank of India in 2016. The benchmark PLR (BPLR) has also been revised to 17.40% p.a. effective from September 19, 2025.
In addition to the MCLR reduction, HDFC Bank offers competitive fixed deposit interest rates ranging from 2.75% to 6.60% for general citizens and 3.25% to 7.10% for senior citizens. The highest interest rates are offered on FD tenures of 18 months to less than 21 months. Home loan interest rates are linked to the Repo Rate and range between 7.90% and 13.20% for salaried and self-employed individuals.
The reduction in MCLR rates is expected to benefit borrowers, especially those with existing loans linked to the MCLR benchmark. However, it’s essential for borrowers to review their loan terms and conditions to understand the impact of the rate reduction on their loan repayments. Overall, the reduction in MCLR rates by HDFC Bank is a positive move for borrowers, making loans more affordable and competitive in the market.