On select tenures, HDFC Bank has trimmed its Marginal Cost of Funds-based Lending Rates (MCLR) by up to five basis points (bps). The details on the bank’s official website states that the revised HDFC Bank MCLR rates are effective as of May 7, 2026. After the modification, subject to the tenure of the loan, HDFC Bank’s MCLR rates currently vary from 8.05% to 8.60% which was earlier used to be between 8.10% and 8.55%.
HDFC Bank Latest MCLR Rates
In comparison to the most recent rate modifications on April 7, 2026, HDFC Bank has updated its MCLRs for a few tenors after a month. The MCLR rates for overnight, one month, three months, and six months have been reduced by five basis points. The overnight and1-month MCLRs have gone down from 8.10% to 8.05%. The 3-month rate dropped from 8.20% to 8.15%. The 6-month MCLR has dropped from 8.35% to 8.30%. However, at 8.35% and 8.45%, respectively, the 1-year and 2-year MCLR rates have not altered. The 3-year MCLR, on the other hand, has been raised by 5 basis points to 8.60% from 8.55%.
| Tenor | MCLR |
| Overnight | 8.05% |
| 1 Month | 8.05% |
| 3 Month | 8.15% |
| 6 Month | 8.30% |
| 1 Year | 8.35% |
| 2 Year | 8.45% |
| 3 Year | 8.60% |
How It Will Impact Borrowers?
HDFC Bank’s latest modifications to Marginal Cost of Funds-based Lending Rate (MCLR) has resulted in slight drop in borrowing costs for some short-term loans and a modest increase in interest rates for long-term borrowers linked to the 3-year benchmark.
The MCLR is the minimum interest rate below which banks cannot lend and many floating rate loans like home loans, personal loans, auto loans and business loans are linked to these benchmarks. A bank’s reduction of MCLR can be beneficial for borrowers who have loans linked to the tenures so that they will have a lower EMI or lower interest costs after the reset date of their loan.
Short-term borrowers may have some respite as the overnight and 1-month MCLRs were dropped from 8.10% to 8.05%, as well as the 3-month and 6-month MCLRs. Those with short-term business loans, working capital loans or certain floating-rate retail loans linked to these terms could benefit particularly.
The existing borrowers will not see an immediate drop in their EMI, till the time their loan resets. However, some long term loans may become a bit costlier with the 3-year MCLR rising from 8.55% to 8.60%. Some corporate and home loans are linked to the 3-year MCLR benchmark. After the next reset cycle borrowers will see either slight increase in EMIs or longer repayment period.
The steady 1-year and 2-year MCLR rates suggest the bank’s stability in medium-term lending costs. Many of the retail home loans are linked to the 1-year MCLR and therefore a significant portion of borrowers may not see any direct impact owing to this revision.
The recent changes in MCLR are a mixed bag from HDFC Bank overall. The lender has also offered some relief to short-term borrowers, but has slightly tightened rates for some longer-tenure loans. The impact on the borrowers will actually depend on the type of loan, benchmark tenure linked to the loan and reset date mentioned in the loan agreement.