HDFC Bank Reduces Lending Rates: Check How Much Your EMIs Will Decrease

HDFC Bank has announced a reduction in its Marginal Cost of Funds-based Lending Rate or MCLR on select tenures by up to 5 basis points. This move is a welcome development for borrowers with loans linked to this benchmark, as it is expected to translate into a reduction into the EMIs.

The new rates came into effect on Sept. 8, and are a direct move of the bank's to align with the broader market. Following this revision, the six-month and one-year MCLR rates have been cut by 5 bps, from the previous 8.70% to 8.65%.

The two-year MCLR has also been reduced from 8.75% to 8.70%. The overnight and one-month MCLR remain at 8.55%, while the three-month MCLR is 8.60%. The three-year MCLR remains unchanged at 8.75%.

The previous rate cut of these rates from HDFC Bank had been announced less than two month ago. The bank had then adjusted its MCLR by up to 30 bps in July 2025.

This rate cut was in response to the Reserve Bank of India maintaining the repo rate at 5.5%, after having cut it by 100 bps since February 2025.