HDFC Bank MCLR Hike may increase the monthly EMI burden for customers who have taken home loans, personal loans or other borrowings linked to the bank’s lending rate.
HDFC Bank has increased its Marginal Cost of Funds-Based Lending Rate (MCLR) by 5 to 15 basis points across all seven tenures.
The revised interest rates came into effect on November 7, 2026. Following the increase, HDFC Bank’s MCLR rates now range from 7.85% to 8.70%, compared with the earlier range of 7.75% to 8.55%.
The decision could increase borrowing costs for customers whose loans are linked to MCLR. However, not every borrower will immediately see a change in their monthly instalment.
HDFC Bank MCLR Hike: Check New Interest Rates
The bank has increased lending rates across all seven MCLR tenures. The highest increase of 15 basis points applies to six-month, one-year, two-year and three-year tenures.
The revised rates are:
Overnight MCLR: Increased from 7.80% to 7.85%.
One-month MCLR: Increased from 7.75% to 7.85%.
Three-month MCLR: Increased from 7.95% to 8.05%.
Six-month MCLR: Increased from 8.15% to 8.30%.
One-year MCLR: Increased from 8.30% to 8.45%.
Two-year MCLR: Increased from 8.40% to 8.55%.
Three-year MCLR: Increased from 8.55% to 8.70%.
One basis point is equal to 0.01 percentage point. Therefore, a 15-basis-point increase means the interest rate has gone up by 0.15 percentage points.
How Much Will Your Home Loan EMI Increase?
The impact of the revised lending rates will depend on the outstanding loan amount, remaining repayment period, existing interest rate and applicable reset date.
For example, consider a borrower who has taken a home loan of ₹20 lakh for 20 years at an annual interest rate of 8%.
At this interest rate, the monthly EMI is approximately ₹16,729. If the interest rate increases to 8.15%, the monthly instalment rises to approximately ₹16,916.
This means the borrower could pay around ₹187 more every month after the revised rate becomes applicable.
Over time, even a relatively small increase in the interest rate can add to the total repayment burden. The actual EMI change will vary according to the borrower’s loan conditions and outstanding balance.
Which HDFC Bank Customers Will Be Affected?
The latest revision primarily affects customers whose existing loans are linked to HDFC Bank’s MCLR.
These may include borrowers with home loans, personal loans, car loans and other eligible floating-interest-rate loans.
However, customers should not assume that every HDFC Bank loan will become more expensive immediately.
The impact depends on the benchmark mentioned in the loan agreement. Borrowers with loans linked to an external benchmark, such as the RBI repo rate, are not directly affected by this particular MCLR revision.
Customers should check their loan statements to understand which benchmark determines their interest rate.
Will Your EMI Increase Immediately?
One important point for borrowers is that an increase in MCLR does not necessarily mean an immediate increase in monthly instalments.
MCLR-linked floating-rate loans generally have a predetermined interest rate reset schedule. The revised rate is passed on when the next applicable reset date arrives, according to the loan agreement.
For example, if a borrower’s loan is linked to the one-year MCLR, the revised rate may apply at the next annual reset date.
Depending on the loan terms, the bank may increase the monthly EMI or extend the remaining repayment period to account for the higher interest cost.
Borrowers should therefore check their loan documents, repayment schedule and next interest rate reset date to understand when the revision will affect them.
What Is MCLR and How Does It Work?
MCLR stands for Marginal Cost of Funds-Based Lending Rate. It is an internal benchmark used by banks to determine their minimum lending rates for eligible loans.
The system was introduced by the Reserve Bank of India in April 2016 to improve transparency in the way banks determine lending interest rates.
MCLR is calculated using factors such as the bank’s cost of funds, operating expenses and the cost of maintaining cash reserves.
When a bank increases its MCLR, borrowers with loans linked to that benchmark may face higher interest rates when their loans are reset.
This is different from repo-rate-linked lending, where the interest rate is connected to an external benchmark set by the RBI.
What Should Existing HDFC Bank Borrowers Do?
Customers with ongoing loans should first check whether their interest rate is linked to MCLR or another benchmark.
They should also review their outstanding principal, remaining loan tenure and applicable reset date. This will help them estimate the possible impact on their monthly budget.
Borrowers facing a higher EMI can discuss available repayment options with the bank, including whether extending the loan tenure is possible.
The latest revision does not affect every customer in the same way. Understanding the loan agreement is therefore important before making any changes to monthly financial planning.
