HDFC Bank New Rates: EMIs to Ease for Short-Term Borrowers As Lender Cuts MCLR

HDFC Bank has revised its interest rates on Tuesday, April 7. This will directly impact loan EMIs. The bank has reduced its Marginal Cost of Funds-Based Lending Rate (MCLR) for select tenures by 0.05%, with the new rates effective from April 7, 2026.

According to the bank’s website, customers with loans linked to MCLR will benefit from this change. Following the revision, HDFC Bank’s MCLR now ranges between 8.10% and 8.55%, compared to the earlier range of 8.15% to 8.55%.

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Impact on Short-Term Loans

The rate cut applies mainly to short-term tenures, while medium and long-term MCLR rates remain unchanged.

Reduced from 8.15% to 8.10%
 
Six months to three years: unchanged at 8.35% (six months and one year), 8.45% (two years), and 8.55% (three years).

What is MCLR?

MCLR is the minimum interest rate below which banks cannot lend. Introduced in 2016, it serves as a key benchmark for home, personal and business loans.

The bank’s base rate stands at 8.80% (effective December 26, 2025), while the benchmark prime lending rate (BPLR) is 17.30% per annum.

General customers: 3.25% to 7%

Senior citizens: 3.25% to 7%

Certain fixed-tenure deposits have seen an increase of 0.10%.

Relief for Borrowers

Borrowers with floating-rate loans linked to overnight, one-month or three-month MCLR will see a slight reduction in interest costs, offering some relief, especially for personal and business loan customers.