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HDFC Bank Cuts MCLR: Loans Get Cheaper, EMIs Likely to Drop

Indiaemploymentnews | April 7, 2026 11:39 PM CST

In a move that brings relief to borrowers, HDFC Bank has reduced its MCLR (Marginal Cost of Funds-Based Lending Rate), making loans slightly cheaper. This decision is expected to ease the burden on customers paying EMIs on home loans, auto loans, and other borrowings linked to MCLR.

The revised rates have come into effect from April 7, 2026.

What Has Changed in MCLR Rates?

After the latest revision, HDFC Bank’s MCLR now ranges between 8.10% and 8.55%, compared to the earlier range of 8.15% to 8.55%.

Updated MCLR Rates:

Overnight: 8.10% (down from 8.15%)
1 Month: 8.10% (down from 8.15%)
3 Months: 8.20% (down from 8.25%)

Unchanged Rates:

6 Months: 8.35%
1 Year: 8.35%
2 Years: 8.45%
3 Years: 8.55%

The reduction of up to 5 basis points mainly impacts short-term loan tenures.

What is MCLR and Why It Matters?

MCLR is the minimum interest rate at which a bank can lend money to customers. It was introduced by the Reserve Bank of India in 2016 to improve transparency and ensure faster transmission of policy rate changes to borrowers.

If your loan is linked to MCLR, any reduction in this rate can lead to:

Lower interest rates
Reduced EMIs
Better affordability for borrowers

Who Will Benefit the Most?

This rate cut will benefit customers who have:

Home loans
Car loans
Other loans linked to short-term MCLR

However, the impact on EMIs may be small but positive, especially for those with loans tied to shorter reset periods.

Base Rate and BPLR Details

Base Rate: 8.80% (effective December 26, 2025)
Benchmark PLR (BPLR): 17.30% per annum

These rates are used for older loan structures and may not directly affect new borrowers.

FD Interest Rates Also Revised

Just a day before the MCLR cut, HDFC Bank also updated its Fixed Deposit (FD) rates:

General customers: 2.75% to 6.50%
Senior citizens: 3.25% to 7.00%

Key Highlight:

FD tenure (3 years 1 day to < 4 years 7 months):
- General: 6.50% (up from 6.40%)
- Senior citizens: 7.00% (up from 6.90%)

What It Means for You

This move signals a softening trend in lending rates, offering slight financial relief to borrowers. While the reduction is modest, it can still help reduce EMI pressure over time.

If you are planning to take a loan or already have one linked to MCLR, this is a positive development.