Home Loan Borrowers get Relief as HDFC Bank cuts MCLR

HDFC Bank has revised its Marginal Cost of Funds Based Lending Rate (MCLR) for select loan tenures.

The new rates came into effect on July 7, 2026.

In the latest revision, the bank has reduced the overnight MCLR by 5 basis points, while keeping most other short-term lending rates unchanged.

HDFC Bank’s Latest MCLR Rates

Here are the revised MCLR rates effective from July 7, 2026:

Apart from the overnight rate cut, the 1-month, 3-month, 6-month, and 2-year MCLR rates remain unchanged.

What Is MCLR and Why Does It Matter?

MCLR, or Marginal Cost of Funds Based Lending Rate, is the minimum interest rate at which banks can offer loans to customers.

Introduced by the Reserve Bank of India (RBI) in 2016, MCLR replaced the old base rate system.

It is used to determine interest rates for various loans, including home loans, personal loans, and business loans.

If your loan is linked to MCLR, changes in these rates can affect the interest you pay and, in some cases, your monthly EMI.

RBI Keeps Repo Rate Unchanged

Last month, the Reserve Bank of India (RBI) decided to keep the repo rate unchanged at 5.25% during its Monetary Policy Committee (MPC) meeting.

RBI Governor Sanjay Malhotra said the decision was taken after reviewing the country’s economic and financial conditions.

The central bank also retained its neutral policy stance, citing global uncertainty and geopolitical tensions in West Asia.

Current RBI Policy Rates

The latest RBI policy rates are:

Repo Rate: 5.25%

Reverse Repo Rate: 3.35%

Standing Deposit Facility (SDF): 3.25%

Marginal Standing Facility (MSF): 5.50%

Bank Rate: 5.50%

Experts believe the RBI chose to keep interest rates unchanged due to rising global uncertainties, including higher crude oil prices caused by tensions in West Asia.

The central bank is expected to closely monitor economic conditions before making any future changes to policy rates.