HDFC Bank announced a reduction in its Marginal Cost of Funds Based Lending Rate recently. This decision benefits borrowers linked to MCLR-based loans directly. Moreover, the new rates became effective from April 7, 2026. Therefore, customers with floating rate loans will see reduced EMI payments.
MCLR Cut and New Rate Range
The bank reduced MCLR by up to 5 basis points for select tenures. One basis point equals one-hundredth of a percentage point. According to official data, new MCLR rates now range between 8.10 percent and 8.55 percent.
Earlier, these rates ranged between 8.15 percent and 8.55 percent. Therefore, this change lowers borrowing costs for eligible customers.
Updated Lending Rates by Tenure
HDFC Bank revised rates mainly for short-term tenures. Overnight MCLR dropped from 8.15 percent to 8.10 percent. Similarly, one-month MCLR also reduced from 8.15 percent to 8.10 percent.
Additionally, three-month MCLR decreased from 8.25 percent to 8.20 percent. However, six-month MCLR remains unchanged at 8.35 percent. Likewise, one-year MCLR stays at 8.35 percent.
Furthermore, two-year MCLR continues at 8.45 percent. Three-year MCLR also remains unchanged at 8.55 percent.
Understanding MCLR and Its Role
MCLR represents the minimum lending rate set by financial institutions for loans. This rate determines the lowest interest charged on loans. Moreover, borrowers benefit from stable rates unless RBI issues new directives.
The Reserve Bank of India introduced MCLR in 2016. Therefore, this framework standardised lending rate calculations across banks.
Other Key Banking Rates
HDFC Bank’s base rate currently stands at 8.80 percent since December 26, 2025. Additionally, the benchmark prime lending rate remains at 17.30 percent annually from the same date.
Earlier, the bank revised fixed deposit interest rates from March 6, 2026. Regular customers receive rates between 2.75 percent and 6.50 percent. Meanwhile, senior citizens receive rates between 3.25 percent and 7 percent.
FD Rate Changes and Impact
For deposits between three years one day and four years seven months, rates increased. The bank raised rates from 6.40 percent to 6.50 percent for regular customers. Similarly, senior citizens now receive 7 percent instead of 6.90 percent.
Therefore, this overall update impacts both borrowers and depositors across different financial products.
