The country’s largest private sector bank, HDFC Bank, has given relief to crores of its customers by reducing the MCLR (Marginal Cost of Funds based Lending Rate) by 0.05%.
This comes after the Reserve Bank of India (RBI) last week cut the repo rate from 5.50% to 5.25%. Following this move, many major banks in India have started lowering their home loan rates, and HDFC Bank has now joined them.
This reduction will directly benefit customers whose loans are linked to MCLR, RLLR, or RBLR. With lower rates, borrowers can either pay a smaller EMI or reduce their loan tenure.
New MCLR Rates at HDFC Bank
HDFC Bank has cut its MCLR rates by 5 basis points. The new MCLR range is 8.30% to 8.55%, down from the previous 8.35% to 8.60%.
This reduction applies to customers with home loans or other retail loans linked to MCLR.
Following this move, other banks are also expected to reduce their benchmark loan rates, which will further ease the financial burden on home loan borrowers.
| Period | New MCLR – Dec 7, 2025 | Old MCLR – Nov 7, 2025 |
|---|---|---|
| Overnight | 8.30% | 8.35% |
| One month | 8.30% | 8.35% |
| Three months | 8.35% | 8.40% |
| Six months | 8.40% | 8.45% |
| 1 year | 8.45% | 8.50% |
| 2 years | 8.50% | 8.55% |
| 3 years | 8.55% | 8.60% |
What is MCLR?
MCLR (Marginal Cost of Funds based Lending Rate) is the minimum interest rate below which a bank cannot lend to its customers. Banks calculate their loan interest rates based on this rate.
The RBI introduced MCLR in 2016 to make interest rates more transparent and to benefit borrowers. Any change in RBI policy gradually affects the MCLR, which then impacts home loan and retail loan rates.