Good news for old borrowers of HDFC Bank who have their loans linked to MCLR as the bank has cut its Marginal Cost of Funds-based Lending rate (MCLR) across various loan tenures by 10 basis points (bps). After the revision, HDFC Bank’s MCLR will now range between 9.10% and 9.35%. The revised rates are applicable from April 7, 2025 onwards.
How does MCLR affect borrowers?
The MCLR is a benchmark rate used by banks to determine interest rates on various floating-rate loans, including home loans, personal loans, and auto loans. A decrease in MCLR translates to a potential drop in loan EMIs or a shorter loan tenure, benefiting borrowers in the long term.
However, the extent and timing of this benefit depends on the reset clause specified in the loan agreement.
Also read: DA hiked by 2% in March 2025: What is the current dearness allowance of Central government employees?
Latest HDFC Bank lending rates
The bank has reduced the overnight and one-month MCLR tenures by 10 bps, from 9.20% to 9.10%. The three-month MCLR has been cut from 9.30% to 9.20%, and the six-month MCLR has been reduced from 9.40% to 9.30%. The one-year and two-year MCLR rates have been reduced from 9.40% to 9.30%. The three-year MCLR has been reduced from 9.45% to 9.35%.
Source: Bank website
What is MCLR?
The Marginal Cost of the Fund-Based Lending Rate or the MCLR is the minimum interest rate a financial institution needs to charge for a specific loan. It dictates the lower limit of the interest rate for a loan. This rate limit is set in stone for borrowers unless specified otherwise by the Reserve Bank of India. The RBI introduced the MCLR in 2016.
Also read: FD rate cut ahead of RBI MPC: HDFC Bank, Yes Bank, Punjab & Sind Bank cut FD interest rate
HDFC Bank base rate
The revised Base Rate will be 9.45% and is effective from Sep 09, 2024.
HDFC Bank Benchmark PLR
HDFC Bank Ltd.'s Benchmark PLR (BPLR) has been updated to 17.95% p.a. from September 09, 2024.
HDFC home loan
The home loan interest rates are linked to the Repo Rate and are variable throughout the tenor of the loan. Standard home loan rates for salaried and self-employed individuals range from 9.40% to 9.95%, while special rates for the same category range between 8.70% and 9.55% as on April 7, 2025. Note that all rates are benchmarked to Policy Repo Rate.
Current applicable Repo Rate = 6.25%
These rates are applicable to eligible borrowers who meet specific criteria set by the lender, such as a strong credit profile, stable income, and other preferential conditions.
How does MCLR affect borrowers?
The MCLR is a benchmark rate used by banks to determine interest rates on various floating-rate loans, including home loans, personal loans, and auto loans. A decrease in MCLR translates to a potential drop in loan EMIs or a shorter loan tenure, benefiting borrowers in the long term.
However, the extent and timing of this benefit depends on the reset clause specified in the loan agreement.
Also read: DA hiked by 2% in March 2025: What is the current dearness allowance of Central government employees?
Latest HDFC Bank lending rates
The bank has reduced the overnight and one-month MCLR tenures by 10 bps, from 9.20% to 9.10%. The three-month MCLR has been cut from 9.30% to 9.20%, and the six-month MCLR has been reduced from 9.40% to 9.30%. The one-year and two-year MCLR rates have been reduced from 9.40% to 9.30%. The three-year MCLR has been reduced from 9.45% to 9.35%.
Source: Bank website
What is MCLR?
The Marginal Cost of the Fund-Based Lending Rate or the MCLR is the minimum interest rate a financial institution needs to charge for a specific loan. It dictates the lower limit of the interest rate for a loan. This rate limit is set in stone for borrowers unless specified otherwise by the Reserve Bank of India. The RBI introduced the MCLR in 2016.
Also read: FD rate cut ahead of RBI MPC: HDFC Bank, Yes Bank, Punjab & Sind Bank cut FD interest rate
HDFC Bank base rate
The revised Base Rate will be 9.45% and is effective from Sep 09, 2024.
HDFC Bank Benchmark PLR
HDFC Bank Ltd.'s Benchmark PLR (BPLR) has been updated to 17.95% p.a. from September 09, 2024.
HDFC home loan
The home loan interest rates are linked to the Repo Rate and are variable throughout the tenor of the loan. Standard home loan rates for salaried and self-employed individuals range from 9.40% to 9.95%, while special rates for the same category range between 8.70% and 9.55% as on April 7, 2025. Note that all rates are benchmarked to Policy Repo Rate.
Current applicable Repo Rate = 6.25%
These rates are applicable to eligible borrowers who meet specific criteria set by the lender, such as a strong credit profile, stable income, and other preferential conditions.
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