HDFC Bank has announced a reduction in its MCLR by up to 10 basis points, offering potential relief to borrowers whose loans are linked to the bank's MCLR benchmark. The revised rates came into effect on September 7, 2026, bringing HDFC Bank's MCLR range down to 7.90%–8.60%, compared with 8.00%–8.65% earlier. The bank has reduced rates across all seven listed tenures.

The updated rates are:

TenureNew MCLREarlier MCLROvernight7.90%8.00%1 Month7.90%8.00%3 Months8.05%8.15%6 Months8.25%8.30%1 Year8.35%8.40%2 Years8.45%8.55%3 Years8.60%8.65% The largest reduction of 10 bps has been applied to the overnight, one month, three month and two year MCLR rates. The six month, one year and three year rates have each been reduced by 5 bps. The reduction could benefit customers whose existing loans are linked to MCLR, including certain home, personal and auto loans. However, the impact on a borrower's EMI will depend on the loan agreement and the applicable interest rate reset date.

A lower MCLR does not automatically mean that every HDFC Bank borrower will see an immediate reduction in EMI. Many newer floating rate retail loans are linked to external benchmarks rather than MCLR. MCLR is an internal benchmark used by banks to determine the minimum lending rate for certain categories of loans. It was introduced by the Reserve Bank of India in 2016. For borrowers, the key point is whether their particular loan is linked to MCLR and when its interest rate is scheduled for revision. Those with MCLR linked loans may see the benefit once their applicable reset takes effect. HDFC Bank's latest move therefore provides some relief for eligible borrowers, while also bringing the bank's benchmark lending rates to their lowest levels across the listed tenures in the latest revision.