HDFC Bank cuts its MCLR rates, now customers will get great relief on home loan EMI

The country's largest private bank HDFC Bank has announced a cut in its Marginal Cost of Funds-based Lending Rate (MCLR). The bank has cut MCLR by 5 basis points. This will give great relief to people taking home loans, car loans, and education loans. Actually, the reduction in MCLR will reduce the EMI coming every month, which will give financial relief to the borrower. Let us tell you that the new rates have come into effect from today i.e. March 7.

What are the new rates?

Now HDFC Bank's MCLR range will be from 9.20% to 9.45%. Under this change, HDFC Bank's 2-year MCLR rate has come down to 9.40%, whereas earlier it was 9.45%. At the same time, the bank has not made any change in the MCLR rates of one month, three months, six months, and one year, which will remain at 9.20%, 9.30%, 9.40%, and 9.40% respectively. Apart from this, the 3-year MCLR rate has been kept stable at 9.45%.

Base rate and benchmark PLR rates

Let us tell you that in November last year, HDFC Bank increased its base rate to 9.45%. Apart from this, the bank's benchmark prime lending rate (BPLR) has also been increased to 17.95% from 9 September 2024.

HDFC home loan rates

HDFC Bank's home loan rates are now linked to the repo rate and can change throughout the loan period. The bank's standard home loan rates range from 9.40% to 9.95%, while special rates range from 8.70% to 9.55%. These rates have come into effect from March 7, 2025.

Current repo rate

Let us tell you that in the RBI's monetary policy meeting in February last month, it was decided to reduce the repo rate. During this, it was reduced by 25 basis points from 6.5 percent to 6.25 percent. This means that as the repo rate changes, HDFC Bank's home loan rates may also change.