HDFC has cut MCLR rates. Image Credit source: ChatGPT
The country’s largest private lender HDFC Bank has reduced the Marginal Cost of Funds-Based Lending Rates (MCLR), which will greatly benefit the loan takers associated with this system. The bank has reduced MCLR rates by up to 5 basis points (bps) on select loan tenures. Basis point is one hundredth of a percentage point. HDFC’s revised MCLR rates have come into effect from January 7, 2026. After this change, HDFC Bank’s MCLR rates have now increased from 8.25 percent to 8.55 percent depending on the loan tenure.
HDFC changed MCLR rates
Overnight and one month MCLR rates have been reduced by 5 basis points, from 8.30 per cent to 8.25 per cent, while three month MCLR rates have come down from 8.35 per cent to 8.30 per cent. There is no change in the six-month MCLR rate of 8.40 percent. One year interest rate (MCLR) has also been reduced from 8.45 percent to 8.40 percent. At the same time, two-year and three-year MCLR remains stable at 8.50 percent and 8.55 percent respectively.
How much has changed in a month
What is MCLR?
Marginal cost of funds-based lending rate or MCLR is the minimum interest rate that a financial institution has to charge on a specific loan. It sets the minimum limit on the interest rate on the loan. Unless otherwise specified by the Reserve Bank of India (RBI), this rate limit is immutable for borrowers. RBI had introduced MCLR (Secondary Rate Rate) in 2016. The current base rate of HDFC Bank is 8.90%, which is effective from September 19, 2025. On the other hand, effective from September 19, 2025, the benchmark PLR (BPLR) of HDFC Bank has been revised to 17.40% per annum.
What are the interest rates on HDFC Bank’s FDA?
HDFC Bank offers fixed deposit interest rates ranging from 2.75% to 6.45% to general citizens and 3.25% to 6.95% to senior citizens for amounts less than Rs 3 crore. The highest interest rates for general citizens and senior citizens are 6.45 percent and 6.95 percent respectively, which are applicable on FDs of 18 months to less than 3 years. These rates are effective from December 17, 2025.