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HDFC Bank cuts MCLR: How much could your EMIs drop?
07 Oct 2025

HDFC Bank has announced a reduction in its Marginal Cost of Funds-based Lending Rates (MCLR), a move that is likely to benefit borrowers with loans linked to this benchmark.

The bank has cut the MCLR by up to 15 basis points (bps) for certain loan tenures. A basis point is one-hundredth of a percentage point.

After the revision, HDFC Bank's MCLR rates now range between 8.45% and 8.65%, depending on the loan tenure.

Overnight MCLR has been cut by 10 bps
Rate details

The revised MCLR rates by HDFC Bank are as follows:

Overnight MCLR has been cut from 8.55% to 8.45%, while the one-month rate has been reduced from 8.55% to 8.4%.

The three-month MCLR has also been cut by 15 bps from 8.6% to 8.45%.

Both six-month and one-year MCLR rates have been reduced by 10 bps each, from their previous levels of 8.65% to a new rate of 8.55%.

What is MCLR?
Rate explanation

MCLR is the minimum interest rate a bank has to charge on a loan.

It determines the minimum interest rate applicable on loans, which remains fixed for borrowers unless otherwise stated by the Reserve Bank of India (RBI).

The RBI introduced MCLR in 2016 as part of efforts to improve transmission of monetary policy rates into lending rates.