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Following the latest monetary policy announcement by the Reserve Bank of India (RBI), HDFC Bank has made a selective adjustment to its lending rates, offering limited relief to certain borrowers. While the central bank chose to keep key policy rates unchanged, HDFC Bank independently reduced its Marginal Cost of Funds Based Lending Rate (MCLR) for a specific tenure.

These revised rates came into effect from 7 February 2026 and will primarily impact customers whose loans are directly linked to the MCLR framework. Here is a detailed and easy-to-understand breakdown of what has changed, who benefits, and what borrowers should expect going forward.

What Change Has HDFC Bank Announced?

HDFC Bank has cut the three-year MCLR by 5 basis points (0.05%). This is the only tenure where a reduction has been made. All other MCLR tenures remain unchanged.

This means:

• Only loans linked to the three-year MCLR will see a reduction in interest rates

• Borrowers with loans tied to other MCLR tenures will not experience any EMI relief at this stage

Although the cut may seem small, it can still translate into savings over the long term, especially for large-ticket loans like home loans.

Updated MCLR Rates: What Is the New Range?

After the revision, HDFC Bank’s MCLR now ranges between 8.25% and 8.60%, depending on the loan tenure. Earlier, the range stood between 8.25% and 8.55%.

While the overall movement is modest, the revision provides marginal relief to borrowers with longer loan tenures, particularly those servicing loans over extended repayment periods.

Which MCLR Rates Remain Unchanged?

HDFC Bank has decided to keep the following MCLR rates exactly the same:

• Overnight MCLR

• One-month MCLR

• Three-month MCLR

• Six-month MCLR

• One-year MCLR

• Two-year MCLR

As a result, borrowers whose loans are linked to these tenures will not see any immediate change in their EMIs. Only customers linked to the three-year MCLR may notice a slight reduction in monthly payments, depending on the reset date of their loan.

Impact of RBI’s Monetary Policy Decision

The RBI announced its latest monetary policy decision on 6 February 2026, choosing to keep the repo rate unchanged at 5.25%. This followed a 0.25% repo rate cut in December 2025, which had already eased borrowing costs to some extent.

Despite the pause by the central bank in February, HDFC Bank went ahead with a selective MCLR cut, indicating a cautious but borrower-friendly approach amid stable interest rate conditions.

What Is MCLR and Why Does It Matter?

The Marginal Cost of Funds Based Lending Rate (MCLR) is the minimum interest rate below which banks cannot lend, except in special cases. It is calculated based on factors such as:

• Cost of funds

• Operating expenses

• Repo rate influence

• Tenure premium

If your home loan, personal loan, or auto loan is linked to MCLR, any reduction in MCLR can lead to:

• Lower interest rates

• Reduced EMIs or shorter loan tenure

However, the actual benefit depends on the loan reset cycle, which could be quarterly, half-yearly, or annually.

Other Key Interest Rates of HDFC Bank

Apart from MCLR-linked loans, HDFC Bank’s other important rates remain unchanged:

• Base Rate: 8.80% (effective from 26 December 2025)

• Benchmark Prime Lending Rate (BPLR): 17.30%

On the deposit side:

• Fixed deposit rates for regular customers range from 2.75% to 6.45%

• Senior citizens earn slightly higher returns, between 3.25% and 6.95%

Should Borrowers Expect More Rate Cuts?

For now, borrowers whose loans are not linked to the three-year MCLR may need to wait. Much will depend on:

• Future RBI policy decisions

• Liquidity conditions

• Inflation trends

Customers are advised to regularly check their loan statements and confirm which benchmark their loan is linked to—MCLR or repo-linked rates—to understand how policy changes affect them.

Bottom Line

HDFC Bank’s decision to lower the three-year MCLR by 5 basis points offers limited but meaningful relief to a specific set of borrowers. While the majority of customers will not see immediate changes, those with loans linked to this tenure could benefit slightly through lower EMIs over time. As interest rates remain stable, borrowers should stay informed and plan repayments strategically.