HDFC Bank raises MCLR by 5-15 bps across all tenures: Check new lending rates and what they mean for your loan EMIs
Private-sector lender HDFC Bank has increased its marginal cost of funds-based lending rates (MCLR) by 5-15 basis points across all seven tenures, with the revised rates effective from Saturday, November 7.
Following the latest revision, the bank’s MCLR rates range from 7.85% to 8.70%, compared with 7.75% to 8.55% earlier.
The hike comes nearly a month after the Reserve Bank of India (RBI) raised its policy repo rate by 25 basis points from 5.25% to 5.50% on October 7, 2026.
MCLR rates are revised periodically by banks based on changes in their funding costs and repo rate set by RBI’s monetary policy committee.
HDFC Bank’s latest lending rates
One basis point is equal to one-hundredth of a percentage point. The hike in HDFC Bank’s lending rates is steeper for longer-duration tenures, with the six-month, one-year, two-year and three-year MCLR rising by 15 bps each.
According to the revised interest rates published on HDFC Bank’s official website, the lender has raised its MCLR across all seven tenures. Check the latest lending rates in the table given below:
What is MCLR?
MCLR rate is the internal benchmark set by banks to determine minimum lending rates, as mandated by the Reserve Bank of India (RBI). Introduced in April 2016, MCLR replaced the older base rate system with an aim to make interest rate transmission more transparent and market-linked.
When you take a loan with an MCLR-linked interest rate, your rate will be reset as per the bank’s prevailing MCLR plus a spread (markup) decided by the bank.
In simple terms, it refers to the minimum interest rate that a lender must charge for loans. Any hike in these rates is likely increase EMI for borrowers, though the impact is not usually immediate.
How will HDFC Bank’s MCLR hike affect borrowers?
The revision could increase borrowing costs for customers whose home loans, personal loans, auto loans and other floating-rate borrowings are linked to the bank’s MCLR. Like we discussed above, the hike will not necessarily lead to an immediate increase in EMIs for all borrowers.
The actual impact will depend on the benchmark linked to the loan, the applicable spread and the interest rate reset date specified in the loan agreement.
For example, if a borrower’s home loan is linked to the one-year MCLR, the revised rate could be passed on when the loan reaches its next annual reset date. If the applicable MCLR rises by 15 basis points, the borrower’s interest rate could increase by the same margin, subject to the loan terms.
Depending on the bank’s repayment structure and loan agreement, the higher interest rate could result in an increase in the monthly EMI or an extension of the loan tenure. Borrowers should check their loan agreements to understand when the revised rate will apply and how it could affect their repayments.
