HDFC Bank Slashes MCLR, Offering Relief to Borrowers

HDFC Bank has reduced its Marginal Cost of Funds-based Lending Rate (MCLR) on select tenures. As per news reports, the cut is up to 5 basis points, where one basis point equals one-hundredth of a percentage point. After the revision, the MCLR now ranges from 8.55% to 8.75%.

Updated Tenure-Wise Rates

The bank’s overnight and one-month MCLR remain steady at 8.55%. The three-month rate is unchanged at 8.60%. The six-month and one-year MCLR have been reduced from 8.70% to 8.65%. The two-year rate has been lowered from 8.75% to 8.70%, while the three-year rate continues at 8.75%.

About MCLR

The Marginal Cost of Funds-based Lending Rate (MCLR) is the minimum interest rate a bank can charge on loans. Introduced by the Reserve Bank of India in 2016, it is a benchmark that ensures lending transparency. Banks cannot lend below this rate unless permitted by the RBI.

Home Loan Interest Rates

As per news reports, HDFC Bank’s home loan rates are linked to the repo rate. As of September 8, 2025, these range between 7.90% and 13.20% for salaried and self-employed borrowers. The calculation is based on the policy repo rate plus a spread of 2.4% to 7.7%.

Base Rate and BPLR

As per news reports, the base rate of HDFC Bank is 9.35%, applicable from June 25, 2025. The Benchmark Prime Lending Rate (BPLR) is 17.85% per annum, also effective from June 25, 2025.

Read more: PNB and Bank of India Reduce Lending Rates Effective September 2025!

Fixed Deposit Rates

As per news reports, for deposits under ₹3 crore, the bank offers interest rates of 2.75% to 6.60% for general citizens, and 3.25% to 7.10% for senior citizens. The highest rate applies to deposits of 18 months to less than 21 months.

Conclusion

HDFC Bank has reduced MCLR on select loan tenures by up to 5 basis points, while other lending benchmarks and deposit rates remain unchanged.

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