India’s largest private lender HDFC Bank has announced good news for millions of customers.
The bank has reduced some of its lending rates, which could lead to lower EMIs on certain loans.
The bank has cut its Marginal Cost of Funds Based Lending Rate (MCLR) by 10 basis points (0.10%) for selected tenures.
The new rates came into effect on March 7, 2026.
After the revision, the bank’s MCLR now ranges between 8.15% and 8.55%, compared to the earlier range of 8.25% to 8.60%.
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New MCLR Rates Announced by HDFC Bank
According to the official information from HDFC Bank, the updated MCLR rates for different loan tenures are:
Overnight and 1-month tenure: 8.15%
3-month tenure: 8.25%
6-month and 1-year tenure: 8.35%
2-year tenure: 8.45%
3-year tenure: 8.55%
These revised rates will apply to loans that are linked to the bank’s MCLR system.
How This Change Can Affect Borrowers
The rate cut can benefit customers who have home loans, auto loans, or personal loans linked to MCLR.
A lower lending rate may lead to slightly reduced EMIs for borrowers.
However, the benefit will not appear immediately.
Banks usually apply such changes on the loan’s interest reset date.
This means your EMI will change only when the next reset cycle of your loan arrives.
Which Borrowers Will Not See Any Change
Not all customers will benefit from this rate cut.
Borrowers whose loans are linked to an external benchmark like the repo rate set by the Reserve Bank of India will not be affected.
Their loan interest rates change only when the repo rate is revised.
So, if your loan is linked to the repo rate, your EMI will depend on the central bank’s policy decisions instead.
What Is MCLR and Why It Matters
MCLR stands for Marginal Cost of Funds Based Lending Rate.
It is the minimum interest rate at which banks usually lend money.
The system was introduced in 2016 by the Reserve Bank of India to ensure that changes in policy rates are passed on to customers more quickly.
Today, many new loans are linked to external benchmarks like the repo rate.
However, many older home loans, car loans, and personal loans are still linked to MCLR.
Because of this, any change in MCLR can still impact a large number of borrowers.