HDFC Bank has announced some relief for its loan customers by reducing its Marginal Cost of Funds-Based Lending Rate (MCLR). The bank has cut MCLR by 5 to 10 basis points across different loan tenures.
The new rates have come into effect from September 7, 2026. After the latest cut, HDFC Bank’s MCLR now ranges from 7.90% to 8.60%, compared with 8.00% to 8.65% earlier.
However, the benefit will mainly apply to borrowers whose home loan, personal loan or other loan is linked to MCLR.
How Much Has HDFC Bank Cut MCLR?
HDFC Bank has reduced the overnight MCLR from 8.00% to 7.90%. The one-month rate has also fallen from 8.00% to 7.90%.
The three-month MCLR has been cut from 8.15% to 8.05%, while the six-month rate has dropped from 8.30% to 8.25%.
The one-year MCLR is now 8.35%, down from 8.40%. For two years, the rate has been reduced from 8.55% to 8.45%, while the three-year MCLR has fallen from 8.65% to 8.60%.
HDFC Bank MCLR Rates for September 2026
| Tenure | New Rate | Previous Rate | Cut |
|---|---|---|---|
| Overnight | 7.90% | 8.00% | 0.10% |
| 1 Month | 7.90% | 8.00% | 0.10% |
| 3 Months | 8.05% | 8.15% | 0.10% |
| 6 Months | 8.25% | 8.30% | 0.05% |
| 1 Year | 8.35% | 8.40% | 0.05% |
| 2 Years | 8.45% | 8.55% | 0.10% |
| 3 Years | 8.60% | 8.65% | 0.05% |
What Is MCLR?
MCLR stands for Marginal Cost of Funds-Based Lending Rate. In simple terms, it is a benchmark rate used by banks to decide the interest rates on certain loans.
The Reserve Bank of India introduced the MCLR system in April 2016.
A borrower’s final loan interest rate can be higher than the MCLR because banks may add a spread depending on the type of loan and other factors.
Will Your EMI Come Down?
A lower MCLR can reduce the interest burden for borrowers with MCLR-linked loans. However, the EMI may not fall immediately after the rate cut.
The actual benefit depends on the loan’s interest-rate reset date and other terms. Borrowers should check whether their loan is linked to MCLR and when the next interest-rate reset is scheduled.
HDFC Bank’s base rate currently stands at 8.70%, while its Benchmark Prime Lending Rate (BPLR) is 17.20% per year, effective June 24, 2026.
Overall, the latest MCLR cut is positive news for eligible borrowers, but the amount they save will depend on their individual loan terms.