HDFC Bank Cuts Loan Rates: HDFC Bank has lowered its Marginal Cost of Funds-based Lending Rate (MCLR) by 5 to 10 basis points across different loan tenures. The new rates started from September 7, 2026.
After the latest change, HDFC Bank’s MCLR now falls between 7.90% and 8.60%. Earlier, the range was 8% to 8.65%. The cut can help some borrowers, but the benefit won’t reach everyone at the same time. It mainly depends on whether the loan is linked to MCLR and when its interest rate is reset. A basis point is equal to one-hundredth of a percentage point. So, a 10 bps cut means the rate has come down by 0.10 percentage points.
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HDFC Bank MCLR Rates in September 2026
HDFC Bank has reduced the rates across all seven listed MCLR tenures. The biggest cuts are 10 bps while some rates have fallen by 5 bps.
| Loan Tenure | Earlier MCLR | New MCLR |
|---|---|---|
| Overnight | 8.00% | 7.90% |
| 1 Month | 8.00% | 7.90% |
| 3 Months | 8.15% | 8.05% |
| 6 Months | 8.30% | 8.25% |
| 1 Year | 8.40% | 8.35% |
| 2 Years | 8.55% | 8.45% |
| 3 Years | 8.65% | 8.60% |
The overnight and 1-month rates have seen a 10 bps reduction. The 3-month and 2-year rates have also fallen by 10 bps. The 6-month, 1-year and 3-year rates have been cut by 5 bps.
What Is MCLR and How Does It Work?
MCLR is a benchmark used by banks to decide lending rates. The Reserve Bank of India introduced the system from April 1, 2016. Under this system, the bank’s cost of getting funds is one of the factors used to set the lending rate.
A borrower’s final interest rate can be higher than the MCLR because banks can add a spread to the benchmark. RBI rules also allow banks to set reset dates for floating-rate loans. The interest rate normally stays unchanged until the next reset date even if the bank changes its MCLR before that date. This means an MCLR cut doesn’t automatically mean an immediate EMI cut.
What Does the MCLR Cut Mean for Borrowers?
People with MCLR-linked loans could see some benefit after their next reset. A lower benchmark can reduce the interest rate and may bring down the EMI or shorten the loan period.
However, the exact benefit will depend on the loan agreement, the reset cycle and the spread charged by HDFC Bank. Borrowers whose loans are linked to another benchmark may not see any direct change from this MCLR revision.
For new borrowers, the MCLR is only one part of the loan pricing. The final rate can also depend on the loan type and the customer’s profile. HDFC Bank’s base rate is currently 8.70%, effective from June 24, 2026. Its Benchmark Prime Lending Rate is 17.20% per year from the same date. The BPLR was earlier 17.30%.
HDFC Bank FD Rates
HDFC Bank’s current domestic FD rates for deposits below ₹3 crore range from 2.75% to 6.50% for regular customers. Senior citizens can get rates from 3.25% to 7.10%, depending on the tenure. These rates are applicable from August 19, 2026.
