HDFC Bank MCLR Cut has brought relief for some borrowers as the bank reduced its Marginal Cost of Funds Based Lending Rate by 5 to 15 basis points from October 7, 2026.
However, the reduction will not immediately lower the EMI for every home loan customer.
The revised MCLR now ranges from 7.75% to 8.55%, depending on the loan tenure.
The biggest reduction has been made in the one-month MCLR, which was cut by 15 basis points.
 HDFC Bank MCLR Cut: Check New Rates
HDFC Bank’s overnight MCLR is now 7.80%, while the one-month rate has been reduced to 7.75%.
The three-month MCLR stands at 7.95% and the six-month rate is 8.15%.
For longer tenures, the one-year MCLR is 8.30%, while the two-year and three-year rates are 8.40% and 8.55%, respectively.
In September, the bank’s MCLR ranged from 7.90% to 8.60%.
The one-year rate, for example, has come down from 8.35% to 8.30%.
Whose Home Loan EMI Can Fall?
The MCLR reduction does not mean that every home loan customer’s EMI will decrease immediately.
The benefit is mainly applicable to borrowers whose loans are linked to the bank’s MCLR and whose interest rate reset date has arrived.
Borrowers whose loans are linked to another benchmark, such as the repo rate, may not see a direct impact from this MCLR reduction.
Therefore, customers should check the benchmark linked to their loan and its reset schedule before expecting an immediate change in their monthly EMI.
What Is MCLR?
MCLR is the minimum lending rate below which a bank generally cannot lend under the applicable lending framework. It was introduced by the Reserve Bank of India in 2016.
When MCLR changes, floating-rate loans linked to it can also see a change in their interest rate when the applicable reset takes effect.
This is why the latest HDFC Bank rate cut may benefit eligible borrowers, while others may see no immediate change.
