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Just before the festive season, HDFC Bank has given a big relief to its customers. Actually, the bank has reduced its Marginal Cost of Funds-based Lending Rate (MCLR) by 5 basis points for a select period. Yes, now it will directly benefit those people whose loans are linked to MCLR. Actually, reducing interest rates will reduce EMI, and borrowing will become cheaper. At a time when people have to fulfill needs like car and home loans, this decision will help in reducing the burden on their pockets. Now EMI will have a direct impact, and borrowing will become a little easier.

This means that HDFC Bank has cut its Marginal Cost of Funds-based Lending Rate (MCLR). Actually, the bank has reduced interest rates by 5 basis points (bps) on select tenures. Let us tell you, 1 basis point is 0.01%.

New MCLR rates
The new rates of the bank will now be between 8.55% to 8.75%, which will be decided according to different loan periods.

Overnight and 1 month MCLR – 8.55%

3-month MCLR – 8.60%

6 months and 1 year MCLR – 8.65% (earlier 8.70%)

2-year MCLR – 8.70% (earlier 8.75%)

3-year MCLR – 8.75% (no change)

Understand the new interest rates?
Let us tell you that according to the official website of HDFC Bank, we will understand the new rates
-Overnight and 1-month MCLR: 8.55% (that is, there is no change in it)
-3 month MCLR: around 8.60%
-6 months and 1 year MCLR: reduced to 8.65% (earlier 8.70%)
-2 year MCLR: 8.70% (earlier 8.75%)
-3 year MCLR: 8.75% (no change)

That is, there will be some relief in EMI on loans with a tenure of 6 months and 1 year. For example, if someone has taken a home loan of Rs 50 lakh for 20 years, then there can be a saving of about Rs 250 to 300 in his monthly EMI.

HDFC Bank New MCLR Rates
Tenor MCLR
Overnight 8.55%
1 Month 8.55%
3 Months 8.60%
6 Months 8.65%
1 Year 8.65%
2 Years 8.70%
3 Years 8.75%

What is MCLR?

MCLR means Marginal Cost of Fund-Based Lending Rate, which is the minimum lending rate of any bank. That is, the bank cannot give a loan at a lower interest rate than this, which was implemented by RBI in the year 2016.

Home Loan Interest Rates

According to the HDFC Bank website, the bank's home loans are linked to the repo rate.

Interest rates for salaried and self-employed (professional and non-professional) customers are between 7.90% to 13.20% (applicable till 8 September 2025).

As per the bank's calculations, home loan interest rate = Policy Repo Rate + 2.4% to 7.7% = 7.90% to 13.20%.

Base Rate and BPLR

HDFC Bank's Base Rate - 9.35% (effective from June 25, 2025)

Benchmark PLR (BPLR) - 17.85% per annum (effective from June 25, 2025)

FD Interest Rates
HDFC Bank is offering FD interest rates of 2.75% to 6.60% for general citizens and 3.25% to 7.10% for senior citizens (for investments less than Rs 3 crore).

Highest interest rate - 6.60% (general) and 7.10% (senior citizens)

Tenure - 18 months to less than 21 months

These rates are effective from June 25, 2025. That is, in simple words, the new rates of HDFC Bank will make the EMI of loans linked to MCLR slightly cheaper.

Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.