By Admin 
- This change will increase the EMI of home-car loan.
HDFC Bank MCLR Rates: Private sector bank HDFC Bank has changed its Marginal Cost of Funds-Based Lending Rates (MCLR) yesterday i.e. on 7th July. Where the bank has reduced short-term (overnight) loan rates by 5 basis points. At the same time, an increase of the same number of basis points has also been made for some selected periods. In this new decision, the bank has increased the 1 year and 3 year MCLR related to home and car loans by 5 basis points.
According to the information available on the official website of the bank, these new rates have come into effect from Tuesday, July 7, 2026. Due to this, the interest rates for corporate or overnight loan customers have undoubtedly reduced, but for the general consumers, the interest rates have increased because most of the retail loans like home or auto loan are linked to 1 year MCLR. In such a situation, an increase of 0.05% may increase the burden of monthly EMI.
How much did the interest rate increase?
As per the new rates, HDFC Bank has reduced the overnight MCLR by 5 basis points from 8.10% to 8.05%. There has been no change in MCLR for one month, three months, six months and two years and they remain at 8.05%, 8.20%, 8.35% and 8.55% respectively. However, the bank has increased the one-year MCLR from 8.40% to 8.45% and three-year MCLR from 8.65% to 8.70%.
Let us tell you that the floating rate loan related to MCLR has a reset period, which is usually one year or six months. That is, the EMI does not increase immediately after the MCLR is increased, rather it becomes effective from the next reset date mentioned in the loan agreement.
Latest MCLR of HDFC Bank
| Loan period | update rate | old rate |
| overnight | 8.05% | 8.10% |
| 1 month | 8.05% | 8.05% |
| 3 months | 8.20% | 8.20% |
| 6 months | 8.35% | 8.35% |
| 1 year | 8.45% | 8.40% |
| 2 years | 8.55% | 8.55% |
| 3 year | 8.70% | 8.70% |
What is MCLR?
‘Marginal Cost of Funds-Based Lending Rate’ (MCLR) is an internal benchmark, below which no bank can give loans to customers. It was implemented in the year 2016 on the instructions of the Reserve Bank of India (RBI) so that banks cannot set interest rates on their own.
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