Last Updated:
HDFC Bank cuts MCLR by up to 5 basis points on select tenures, with rates now between 8.55 percent and 8.75 percent, despite Reserve Bank of India keeping repo rate unchanged.
The six-month and one-year MCLR have been trimmed by 5 basis points each, easing from 8.70% to 8.65%.
HDFC Bank MCLR: India’s largest private lender, HDFC Bank, has cut its Marginal Cost of Funds-based Lending Rates (MCLR) by up to 5 basis points (bps) on select loan tenures. HDFC Bank’s MCLR is now between 8.55 per cent to 8.75 per cent, depending on the loan tenure.
Borrowers with home loans, car loans, or personal loans that are linked to MCLR will see their interest rates adjusted in line with the revised rates during their reset period. Borrowers with loans linked to the external benchmark (like the RBI’s repo rate) will not be affected.
Marginal Cost of the Fund-Based Lending Rate is the minimum interest rate a financial institution that needs to charge for a specific loan. It dictates the lower limit of the interest rate for a loan. This rate limit is set in stone for borrowers unless specified otherwise by the Reserve Bank of India.
HDFC Bank has kept its overnight and one-month MCLR steady at 8.55%, while the three-month rate is unchanged at 8.60%. The six-month and one-year MCLR have been trimmed by 5 basis points each, easing from 8.70% to 8.65%. The two-year MCLR has also been lowered by 5 bps to 8.70%, whereas the three-year rate stays firm at 8.75%.
HDFC Bank’s decision to cut MCLR comes despite the Central bank kept the repo rate unchanged in August MPC meet at 5.50 per cent. In the previous three MPC meets, RBI had cut the repo rate by 100 bps cumulatively (25 bps twice and 50 bps), to ease liquidity amid the slowing down of inflation. RBI, however, changed the stance from ‘accommodative’ to ‘neutral’.
The bank had earlier reduced its Marginal Cost of Funds-based Lending Rates (MCLR) by 5 basis points (bps) across several loan tenures. The new rates came into effect from August 7.
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
September 08, 2025, 14:28 IST
Read More
