Do you have an ongoing loan with HDFC Bank? The bank has raised interest rates, which means your EMIs will become more expensive.
HDFC Bank has increased its interest rates, with the new rates coming into effect on November 7. Specifically, the bank has raised its MCLR (Marginal Cost of Funds-based Lending Rate) by up to 15 basis points (bps). This will impact customers with home loans and personal loans.
HDFC Bank has increased its MCLR across various tenures by 5 to 15 basis points (bps). Consequently, if you have an ongoing home loan, personal loan, or any other type of loan with HDFC Bank, your EMI is set to increase.
The new rates have been in effect since November 7, 2024. Following this change, HDFC Bank’s MCLR now ranges from 7.85% to 8.70%, compared to the previous range of 7.75% to 8.55%.
Bank’s MCLR rates for different tenures
| Loan Tenure |
October 2026 Rates |
New Rates Effective November 7, 2026 |
Total Increase |
|---|---|---|---|
| Overnight |
7.80% |
7.85% |
5 bps (0.05%) |
| 1 Month |
7.75% |
7.85% |
10 bps (0.10%) |
| 3 Months |
7.95% |
8.05% |
10 bps (0.10%) |
| 6 Months |
8.15% |
8.30% |
15 bps (0.15%) |
| 1 Year |
8.30% |
8.45% |
15 bps (0.15%) |
| 2 Years |
8.40% |
8.55% |
15 bps (0.15%) |
| 3 Years |
8.55% |
8.70% |
15 bps (0.15%) |
What is MCLR?
MCLR (Marginal Cost of Funds-based Lending Rate) is the minimum interest rate set by the Reserve Bank of India (RBI), below which a bank cannot lend to any customer. In other words, it serves as a base rate for banks when issuing loans. If your home loan, car loan, or personal loan is linked to the MCLR, this change will directly affect your loan's interest rate or tenure.
However, this does not mean that your installment amount will increase immediately. Loans linked to the MCLR with a floating interest rate have a designated 'interest rate reset date.' In such a scenario, according to your loan agreement, your EMI will increase only when your next 'reset date' arrives. However, if your loan is directly linked to the Reserve Bank’s repo rate, you will not be affected by this increase in the MCLR.
Why is the MCLR different from the repo rate?
The MCLR is determined entirely by a bank's internal costs. If fewer people are depositing money into fixed deposits (FDs), the bank may raise FD interest rates to attract customers and mobilize more funds. Since the bank then has to pay higher interest on these FDs, its overall costs increase. To compensate for this, the bank raises its MCLR.
On the other hand, the repo rate is the rate at which the RBI lends money to the country's banks. If the RBI raises the repo rate, banks are essentially compelled to increase their own loan interest rates within the following few months. Conversely, if the repo rate is reduced, banks are required to lower their interest rates.
