HDFC Bank revised its MCLR effective July 7, 2026, with rates now ranging from 8.05 per cent to 8.70 per cent.
The one-year MCLR, used as a benchmark for many loans, was raised by 5 bps to 8.45 per cent.
Borrowers may see higher EMIs, since MCLR changes can affect home, personal, and vehicle loans.
HDFC Bank Expands MCLR Range Across Tenures: Latest Details
HDFC Bank has revised its MCLR, effective July 7, 2026, and expanded the lending rate range from 8.05 per cent to 8.70 per cent. The one-year MCLR, the benchmark for most loans, has been raised by 5 basis points (bps) to 8.45 per cent
Summary
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The HDFC Bank, as part of its monthly review, revised the Marginal Cost of Funds-Based Lending Rates (MCLR) on July 7, 2026. The new rates now range from 8.05 per cent to 8.70 per cent compared to the previous range of 8.10 per cent to 8.60 per cent. The bank has reduced its overnight MCLR by 5 bps and increased the one-year and 3-year MCLRs by 5 bps each.
MCLR for one-month, three-month, and six-month has been kept unchanged at 8.05 per cent, 8.20 per cent, and 8.35 per cent, respectively. The rate for two-year MCLR has also remained unchanged at 8.55 per cent after the revision.
HDFC Bank MCLR
Here are the details of the changes in MCLR over the last three months.
Source: HDFC Bank Website
Marginal Cost of Funds-Based Lending Rates (MCLR)
MCLR is the minimum lending rate at which a bank can lend money. It is determined by the bank taking into account its liquidity condition, repo rate, cash reserve ratio (CRR), tenure premium, and operating expenses.
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Banks are not permitted to offer loans below MCLR, and thus, when the minimum base rate increases, the rate of the final lending rate also increases. The final lending rate is determined using MCLR as the base and adding a spread over it. The spread is discretionary, and banks decide the spread based on various factors, such as the amount of the loan, CIBIL score, tenure of the loan, and any other risk involved in any particular case.
The change in rates will impact the home loans, personal loans, vehicle loans, etc., for both existing and new borrowers.
In effect, the equated monthly instalments (EMIs) may increase for the borrowers, or they may explore increasing the loan tenure.
While the bank revises its MCLR every month, its fixed deposit (FD) rates were last changed on March 6, 2026. On FDs, the bank offers the highest 6.50 per cent to the general public and 7.00 per cent to senior citizens, including the additional 50 bps available for them. This rate is available for three years ‘one day to less than four years seven months’.
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