HDFC Bank has revised its Marginal Cost of Funds-based Lending Rate (MCLR), reducing the 2-year MCLR by 5 basis points (bps) while keeping other loan tenures unchanged.
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The new rates, effective March 7, 2025, will now range between 9.20% and 9.45%.
Latest HDFC Bank MCLR rates
| Tenure | MCLR (%) |
|---|---|
| Overnight | 9.20% |
| 1 Month | 9.20% |
| 3 Month | 9.30% |
| 6 Month | 9.40% |
| 1 Year | 9.40% |
| 2 Year | 9.40% |
| 3 Year | 9.45% |
The Marginal Cost of Funds-based Lending Rate (MCLR) is the minimum interest rate banks charge for loans. It sets the lower limit for lending rates unless revised by the Reserve Bank of India (RBI). The RBI introduced MCLR in 2016 to ensure fair pricing for borrowers.
Borrowers with loans linked to MCLR will see changes in their loan EMIs when MCLR rates fluctuate.
For those with loans taken before 2016, the base rate or Benchmark Prime Lending Rate (BPLR) still applies.
When MCLR decreases EMIs for loans such as home, personal, and business loans also fall.
While the 2-year MCLR cut may marginally reduce loan costs for borrowers with interest rates linked to this tenure, other loan segments remain unchanged.
Borrowers considering long-term loans may see no immediate impact.
