If you have a loan with HDFC Bank linked to the Marginal Cost of Funds-based Lending Rate (MCLR), it’s time to take a quick look at your loan details.
The bank has recently announced adjustments to its lending rates, and depending on your specific loan tenure, this might impact your finances.
What’s Changing?
The bank has updated its MCLR, which is essentially the floor rate—the minimum interest rate a financial institution must charge for specific loans. The recent changes, effective as of July 2026, show a mixed trend:
- The Good News: If your loan tenure falls under the “Overnight” category, you might see a slight benefit, as this rate has decreased by 5 basis points.
- The Trade-off: Certain longer-tenure loans, specifically the 1-year and 3-year tenures, have seen an increase of 5 basis points.
It’s helpful to remember that a basis point (bps) is just one-hundredth of a percentage point. While these adjustments may seem small, they can influence the interest costs on floating-rate loans.
Quick Breakdown of the Rates
Following this revision, the bank’s MCLR rates now fluctuate between 8.05% and 8.60%, depending on the duration of your loan. For comparison, previous rates sat between 8.10% and 8.55%.
Beyond MCLR: Other Updates
It isn’t just the MCLR that has been adjusted. HDFC Bank has also updated other key benchmarks:
- Base Rate: Revised to 8.70%, down from 8.80%.
- Benchmark Prime Lending Rate (BPLR): Revised to 17.20% per annum, down from 17.30%.
What Should You Do?
If you are a borrower, your interest rate is often linked to these benchmarks. Since these rates are reviewed monthly, it is a smart practice to keep an eye on your loan reset date.
If you are concerned about how these changes affect your specific EMI, the best step is to check your loan account on the official HDFC Bank website or reach out directly to your bank branch. Staying informed helps you plan your monthly budget more effectively!
Disclaimer: This information is for educational purposes and based on the latest available data. Please consult your bank or a financial advisor to understand how these specific changes apply to your personal loan agreement.
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