HDFC Bank has revised its loan interest rates, bringing relief for some borrowers while slightly increasing rates for a specific loan tenure.
The bank has reduced its Marginal Cost of Funds-Based Lending Rate (MCLR) by 5 basis points (0.05%) for several short-term tenures.
However, it has also increased the 3-year MCLR by 5 basis points.
The new rates came into effect from May 7, 2026.
After the revision, HDFC Bank’s MCLR now ranges between 8.05% and 8.60%, depending on the loan period.
Which Loan Rates Have Become Cheaper?
HDFC Bank has reduced MCLR rates for overnight, 1-month, 3-month and 6-month tenures.
Here are the updated rates:
| Duration | New MCLR |
|---|---|
| Overnight | 8.05% |
| 1 Month | 8.05% |
| 3 Months | 8.15% |
| 6 Months | 8.30% |
| 1 Year | 8.35% |
| 2 Years | 8.45% |
| 3 Years | 8.60% |
The overnight and 1-month MCLR rates were earlier 8.10%, while the 3-month and 6-month rates stood at 8.20% and 8.35% respectively.
This means borrowers with loans linked to short-term MCLR tenures may see a slight reduction in their EMI burden.
3-Year MCLR Increased
While most short-term rates were reduced, the bank increased the 3-year MCLR from 8.55% to 8.60%.
Meanwhile:
1-year MCLR remains unchanged at 8.35%
2-year MCLR remains unchanged at 8.45%
This increase may impact borrowers whose loans are linked to the 3-year benchmark.
What is MCLR?
MCLR stands for Marginal Cost of Funds-Based Lending Rate.
It is the minimum interest rate below which banks generally cannot lend money.
Introduced by the Reserve Bank of India (RBI) in 2016, MCLR helps banks decide interest rates for loans like:
Home loans
Personal loans
Auto loans
Business loans
If your loan is linked to MCLR, changes in these rates can directly affect your EMI amount.
HDFC Bank Base Rate and Benchmark PLR
Apart from MCLR, HDFC Bank has also kept its other benchmark rates unchanged.
Base Rate: 8.80%
Benchmark Prime Lending Rate (BPLR): 17.30% per annum
Both rates are effective from December 26, 2025.
HDFC Bank FD Rates Also Updated
HDFC Bank had earlier revised its Fixed Deposit (FD) interest rates from March 6, 2026.
For regular customers, the bank currently offers FD interest rates between 2.75% and 6.50%.
Senior citizens can earn between 3.25% and 7%.
The bank has especially increased FD rates for deposits with tenures between 3 years 1 day and less than 4 years 7 months.
For these tenures:
General customers now get 6.50% interest instead of 6.40%
Senior citizens now get 7% instead of 6.90%
This makes long-term FDs slightly more attractive for investors looking for stable returns.
