HDFC Bank Cuts MCLR by Up to 10 bps on Select Tenure effective from Today, 7 Nov 2025

HDFC Bank, India’s largest private sector lender, has reduced its Marginal Cost of Funds-based Lending Rates (MCLR) by up to 10 basis points (bps) on select tenures, providing marginal relief to borrowers with loans linked to this benchmark.

The revised rates came into effect on 7 November 2025.

Revised HDFC Bank MCLR Rates

Following the revision, HDFC Bank’s MCLR now ranges between 8.35% and 8.60%, depending on the tenure. Previously, the bank’s lending rates stood between 8.45% and 8.65%.

Here’s a look at the updated MCLR rates across different tenures:

The one-year MCLR, which is typically used to price most retail loans such as home loans, car loans, and personal loans, has been cut by 5 basis points to 8.50%.

Impact on Borrowers' EMI

Borrowers whose loans are linked to HDFC Bank’s MCLR will benefit from this rate reduction, as their equated monthly instalments (EMIs) may reduce slightly over time.

However, the exact impact will depend on the reset date of each borrower’s loan the date on which the bank reviews and adjusts the interest rate based on prevailing MCLR levels.

What Is MCLR?

The Marginal Cost of Funds-based Lending Rate (MCLR) is the minimum lending rate that banks can charge for loans. Introduced by the Reserve Bank of India (RBI) in 2016, MCLR ensures that lending rates are more closely aligned with banks’ funding costs.

Read More: Kotak Silver ETF vs HDFC Silver ETF: Which Silver Fund Shines Brighter in 2025?

Conclusion

HDFC Bank’s latest MCLR revision offers a small but welcome relief to borrowers amid changing interest rate trends. Borrowers are advised to review their loan terms and check when their interest rate reset is due to fully benefit from the updated MCLR rates.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.