Kolkata: HDFC Bank is the biggest private sector lender in India. It has lowered MCLR or Marginal Cost of Funds-based lending rates on select tenures. extent of reduction is 5 basis points and the new rates have come into effect from today, April 7, 2026. As a result, those borrowers who have taken loans connected to the MCLR will benefit since the EMIs of loans tied to the Marginal Cost of Funds will go down from today. These can be home loans, car loans, personal loans and some loans taken offering securities as a collateral.
MCLR rates and tenure
One-month rate: 8.15% (old), 8.10% (new)
Three-month rate: 8.25% (old), 8.20% (new)
Six-month rate: 8.35% (no change)
One-year rate: 8.35% (no change)
Two-year rate: 8.45% (no change)
Three-year rate: 8.55% (no change)
What is MCLR?
MCLR or Marginal Cost of Funds-Based lending rate is defined as the minimum interest rate below which any bank or financial institution cannot lend to anyone. It was introduced by the Reserve Bank of India on April 1, 2016. It was designed to enhance transparency. This rate of interest is calculated on the marginal cost of funds, operating expenses of the bank and tenor premium.
A significant part of HDFC Bank’s loans are still pegged to the MCLR though in the past few years new retail loans such as home and car loans have migrated to the Repo rate linked loans. But a lot of loans, especially those before 2019 are still based on MCLR. These are mostly older consumer loans and certain corporate loans.
Interest rates on HDFC Bank fixed deposits
It must be noted that HDFC Bank revised interest rates on FDs with effect from March 6, 2026. The FD interest rates range from 2.75% and 6.50% to general customers from and from 3.25% to 7% for those above 60 years. The bank has raised interest rates on FD by 10 basis points from 6.40% to 6.50% on tenures of 3 years 1 day to less than 4 years 7 months. When it comes to senior citizens, the same FDs will carry interest rates from 6.90% to 7%.