HDFC Bank MCLR Cut: Will Your Loan EMI Reduce Now?

HDFC Bank has revised its Marginal Cost of Funds-based Lending Rate (MCLR), reducing rates on select tenures, providing relief to borrowers whose loans are linked to this lending benchmark. The revised rates have come into effect from February 7, 2026.

A reduction in MCLR generally lowers loan interest rates for customers with MCLR-linked home, auto, or personal loans, depending on reset periods.

Key Change in Lending Rates

Under the latest revision, HDFC Bank reduced the MCLR on the three-year tenure by 5 basis points. Other tenures remain unchanged. Following the revision, the bank’s MCLR rates now range between 8.25% and 8.60%, depending on tenure.

Current MCLR rates are: Overnight and one-month tenures at 8.25%, three-month at 8.30%, six-month and one-year at 8.40%, two-year at 8.50%, and three-year at 8.60%. Borrowers with loans linked to the three-year tenure stand to benefit from the revision.

RBI Repo Rate Decision Impact

The revision follows the Reserve Bank of India’s decision to keep the repo rate unchanged at 5.25% after its February 6, 2026 Monetary Policy Committee meeting. The central bank had earlier cut rates by 25 basis points in December 2025, creating room for banks to adjust lending rates selectively.

Other Key Lending and Deposit Rates

HDFC Bank’s base rate currently stands at 8.80%, effective December 26, 2025. The bank’s Benchmark Prime Lending Rate (BPLR) remains at 17.30%.

In terms of deposits, HDFC Bank offers fixed deposit rates ranging from 2.75% to 6.45% for general customers and 3.25% to 6.95% for senior citizens for deposits below ₹3 crore. The highest rates are available for tenures between 18 months and less than three years.

Also Read: HDFC Bank Highlights ₹305 Crore Deposits per Branch, Signals Deposit Growth Visibility!

Conclusion

HDFC Bank’s selective MCLR reduction provides modest relief to borrowers, particularly those linked to longer tenures, while maintaining stability in other lending benchmarks amid a steady interest rate environment.

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