India’s largest private sector bank, HDFC Bank, has given good news to millions of customers by reducing home loan interest rates.
This move will help borrowers lower their monthly EMIs.
The bank has cut its Marginal Cost of Funds Based Lending Rate (MCLR) by 0.10% (10 basis points).
HDFC Bank revises these rates on the 7th of every month, and the new rates took effect from November 7, 2025.
New MCLR Rates
After the reduction, HDFC Bank’s MCLR now ranges from 8.35% to 8.60%, compared to the previous range of 8.45% to 8.65%.
This means loans across all tenures have become 5 to 10 basis points cheaper.
| Period | New MCLR (Nov 7, 2025) | Old MCLR (Oct 7, 2025) |
|---|---|---|
| Overnight | 8.35% | 8.45% |
| One month | 8.35% | 8.40% |
| Three months | 8.40% | 8.45% |
| Six months | 8.45% | 8.55% |
| One year | 8.50% | 8.55% |
| Two years | 8.55% | 8.60% |
| Three years | 8.60% | 8.65% |
What is MCLR?
MCLR (Marginal Cost of Funds Based Lending Rate) is the minimum interest rate below which a bank cannot lend to customers.It sets the lower limit for loan interest rates.
The Reserve Bank of India (RBI) introduced the MCLR system in 2016 to make lending rates more transparent and to protect borrowers’ interests.
Current Home Loan and Base Rates
HDFC Bank’s home loans are linked to the repo rate.
According to the bank’s website, interest rates for salaried and self-employed customers currently range from 7.90% to 13.20%, depending on the RBI’s policy repo rate plus 2.4% to 7.7%.
Base Rate: 8.90% (effective from September 19, 2025)
Benchmark Prime Lending Rate (BPLR): 17.40% per annum