Another blow amidst rising inflation! This bank has hiked interest rates; home and car loans will become costlier.

HDFC Bank: HDFC, the country's largest private sector bank, has increased interest rates on loans. Consequently, customers will now have to pay higher EMIs for home loans, car loans, or personal loans compared to before. The bank has hiked its MCLR by 5–10 basis points. The new rates became effective yesterday, June 8, 2026.

This decision will impact customers whose home loans, car loans, or personal loans are linked to the MCLR. These customers may see an increase in their EMI amounts or an extension of their loan repayment tenure. HDFC Bank took this decision after the Reserve Bank of India (RBI) kept the repo rate unchanged at 5.25% during its monetary policy meeting. This decision by the bank will not affect loans linked to the RBI's repo rate.

HDFC Bank's New MCLR Interest Rates

The bank's MCLR now ranges from 8.05% to 8.65% across various tenures.

Overnight: Increased from 8.05% to 8.10%.

3-month MCLR: Now stands at 8.20%.

6-month MCLR: Increased to 8.35%.

1-year MCLR: Increased from 8.35% to 8.40%.

2-year MCLR: Raised from 8.45% to 8.55%.

3-year MCLR: Now reaches a maximum of 8.65%. Impact on Customers

If your home loan, car loan, or personal loan is linked to the MCLR, your monthly EMI will automatically increase, or the loan tenure will be extended, upon the next reset date.
If your loan is linked to an external benchmark—specifically the RBI's repo rate—this hike will have no impact on you.