HDFC Update: HDFC Bank's New Year gift: Big relief offered on home and car loan EMIs..

HDFC Bank, the country's largest private lender, has reduced its marginal cost of funds-based lending rates (MCLR), significantly benefiting borrowers under this scheme. The bank has reduced MCLR rates by up to 5 basis points (bps) on select loan tenures. A basis point is one-hundredth of a percentage point. HDFC's revised MCLR rates are effective January 7, 2026. Following this change, HDFC Bank's MCLR rates now range from 8.25% to 8.55%, depending on the loan tenure.

HDFC Revises MCLR Rates
Overnight and one-month MCLR rates have been reduced by 5 basis points, from 8.30% to 8.25%, while the three-month MCLR rate has been reduced from 8.35% to 8.30%. The six-month MCLR rate remains unchanged at 8.40%. The one-year MCLR has also been reduced from 8.45% to 8.40%. The two-year and three-year MCLRs remain unchanged at 8.50% and 8.55%, respectively.

How much has changed in one month?
Term MCLR (December 2025) New MCLR – Effective January 7, 2026
Overnight 8.30% 8.25%
One Month 8.30% 8.25%
Three Months 8.35% 8.30%
1 Year 8.45% 8.40%
2 Years 8.50% 8.50%
3 Years 8.55% 8.55%

What is MCLR?
The marginal cost of funds-based lending rate, or MCLR, is the minimum interest rate a financial institution must charge on a specific loan. It sets a minimum limit on the interest rate on loans. This rate limit is unchangeable for borrowers unless otherwise specified by the Reserve Bank of India (RBI). The RBI introduced the MCLR (Intermediate Rate) in 2016. HDFC Bank's current base rate is 8.90%, effective September 19, 2025. Meanwhile, effective September 19, 2025, HDFC Bank's benchmark PLR (BPLR) has been revised to 17.40% per annum.

What are HDFC Bank's interest rates on FDI?
HDFC Bank offers fixed deposit interest rates ranging from 2.75% to 6.45% for general citizens and 3.25% to 6.95% for senior citizens for amounts less than ₹3 crore. The highest interest rates for ordinary citizens and senior citizens are 6.45% and 6.95%, respectively, for FDs with maturities ranging from 18 months to less than 3 years. These rates are effective from December 17, 2025.

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