HDFC Bank, the country’s largest private sector bank, has given relief to its crores of customers by reducing loan interest rates. The bank has cut its MCLR (Marginal Cost of Funds Based Lending Rate) by 0.05% for all loan tenures except the 2-year period.
Since loan rates like home loans, car loans, and personal loans are directly linked to MCLR, customers will get the benefit of reduced EMIs. Banks cannot offer loans at interest rates lower than the MCLR, so any cut in MCLR means lower borrowing costs for customers.
This new reduction in rates has been effective from 7th August 2025.
New HDFC Bank MCLR Rates (Effective 7 August 2025)
| Period | New MCLR (7 Aug 2025) | Old MCLR (7 Jul 2025) |
|---|
| Overnight | 8.55% | 8.60% |
| 1 Month | 8.55% | 8.60% |
| 3 Months | 8.60% | 8.65% |
| 6 Months | 8.70% | 8.75% |
| 1 Year | 8.70% | 8.75% |
| 2 Years | 8.75% | 8.75% |
| 3 Years | 8.75% | 8.80% |
The most significant changes include:
Overnight and 1-month MCLR down from 8.60% to 8.55%
3-month MCLR down from 8.65% to 8.60%
6-month and 1-year MCLR down from 8.75% to 8.70%
3-year MCLR reduced from 8.80% to 8.75%
What Does a Change in MCLR Mean for You?
MCLR affects all floating rate loans, including home loans, personal loans, and car loans.
When MCLR goes down, EMIs reduce.
When MCLR goes up, EMIs increase.
Even though the RBI has not changed the repo rate recently, HDFC Bank has independently adjusted its MCLR to benefit borrowers.
How Do Banks Decide MCLR?
MCLR is determined based on:
Repo rate (set by RBI)
Interest rates on deposits
Operational costs
Cash Reserve Ratio (CRR)
Changes in the repo rate by the RBI usually influence MCLR, which in turn affects your loan EMIs.