Hdfc bank cuts interest rates today Ever felt the weight of those EMIs tightening your monthly budget? If you’ve been waiting for some good news on loan rates, here it is — HDFC Bank has just announced a reduction in its MCLR (Marginal Cost of Funds-Based Lending Rate) by up to 10 basis points.
This change, effective from November 7, 2025, might sound small on paper, but it can actually make your home loan, personal loan, or car loan lighter on your wallet. Let’s unpack what this means for you.
What Exactly Happened — and Why It Matters
HDFC Bank, one of India’s leading private banks, has revised its lending rates downward, bringing relief to millions of borrowers.
The bank’s MCLR — which decides the minimum rate at which loans are offered — has been cut across several tenures. This means anyone with a floating-rate loan linked to MCLR could soon see their EMIs drop slightly.
HDFC Bank’s New MCLR Rates (Effective from November 7, 2025)
| Loan Tenure | Previous MCLR | New MCLR | Reduction |
|---|---|---|---|
| Overnight | 8.45% | 8.35% | 10 bps |
| 1 Month | 8.40% | 8.35% | 5 bps |
| 3 Months | 8.45% | 8.40% | 5 bps |
| 6 Months | 8.55% | 8.45% | 10 bps |
| 1 Year | 8.55% | 8.50% | 5 bps |
| 2 Years | 8.60% | 8.55% | 5 bps |
| 3 Years | 8.65% | 8.60% | 5 bps |
But Wait, What Is MCLR?
If the term sounds confusing, here’s a quick refresher.
MCLR (Marginal Cost of Funds-Based Lending Rate) is the minimum interest rate below which a bank cannot lend. It’s essentially the benchmark used to decide how much interest you’ll pay on your loan.
Introduced by the Reserve Bank of India (RBI) in 2016, MCLR replaced the older base rate system to make loan pricing more transparent and fair for borrowers.
What It Means for Home Loan Borrowers
For anyone planning to buy a home, this could be the perfect window.
As per HDFC Bank’s website (as of November 7, 2025), the home loan interest rate — which is linked to the RBI repo rate — currently ranges from 7.90% to 13.20%.
Here’s how that’s calculated:
Repo Rate + 2.4% to 7.7% = 7.90% to 13.20%
That range depends on factors like your income, credit score, and loan type (salaried or self-employed).
So if the repo rate stays stable and MCLR continues to ease, your borrowing costs could remain comfortably low heading into 2026.
HDFC Bank’s Current Benchmark Rates
| Benchmark Type | Effective From | Rate |
|---|---|---|
| Base Rate | September 19, 2025 | 8.90% |
| Benchmark PLR (BPLR) | September 19, 2025 | 17.40% |
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