HDFC Bank raises MCLR by 5-15 bps across all tenures: Check new lending rates and what they mean for your loan EMIs
Private-sector lender HDFC Bank has increased its marginal cost of funds-based lending rates (MCLR) by 5-15 basis points across all seven tenures, with the revised rates effective from Saturday, November 7.
Following the latest revision, the bank's MCLR rates range from 7.85% to 8.70%, compared with 7.75% to 8.55% earlier.
The hike comes nearly a month after the Reserve Bank of India (RBI) raised its policy repo rate by 25 basis points from 5.25% to 5.50% on October 7, 2026.
MCLR rates are revised periodically by banks based on changes in their funding costs and repo rate set by RBI's monetary policy committee.
One basis point is equal to one-hundredth of a percentage point. The hike in HDFC Bank's lending rates is steeper for longer-duration tenures, with the six-month, one-year, two-year and three-year MCLR rising by 15 bps each.
According to the revised interest rates published on HDFC Bank's official website, the lender has raised its MCLR across all seven tenures. Check the latest lending rates in the table given below:
| Tenure | Previous rate | Revised rate | Change |
|---|---|---|---|
| Overnight | 7.80% | 7.85% | + 5 bps |
| 1 month | 7.75% | 7.85% | + 10 bps |
| 3 months | 7.95% | 8.05% | + 10 bps |
| 6 months | 8.15% | 8.30% | + 15 bps |
| 1 year | 8.30% | 8.45% | + 15 bps |
| 2 years | 8.40% | 8.55% | + 15 bps |
| 3 years | 8.55% | 8.70% | + 15 bps |
MCLR rate is the internal benchmark set by banks to determine minimum lending rates, as mandated by the Reserve Bank of India (RBI). Introduced in April 2016, MCLR replaced the older base rate system with an aim to make interest rate transmission more transparent and market-linked.
When you take a loan with an MCLR-linked interest rate, your rate will be reset as per the bank's prevailing MCLR plus a spread (markup) decided by the bank.
In simple terms, it refers to the minimum interest rate that a lender must charge for loans. Any hike in these rates is likely increase EMI for borrowers, though the impact is not usually immediate.
The revision could increase borrowing costs for customers whose home loans, personal loans, auto loans and other floating-rate borrowings are linked to the bank's MCLR. Like we discussed above, the hike will not necessarily lead to an immediate increase in EMIs for all borrowers.
The actual impact will depend on the benchmark linked to the loan, the applicable spread and the interest rate reset date specified in the loan agreement.
For example, if a borrower's home loan is linked to the one-year MCLR, the revised rate could be passed on when the loan reaches its next annual reset date. If the applicable MCLR rises by 15 basis points, the borrower's interest rate could increase by the same margin, subject to the loan terms.
Depending on the bank's repayment structure and loan agreement, the higher interest rate could result in an increase in the monthly EMI or an extension of the loan tenure. Borrowers should check their loan agreements to understand when the revised rate will apply and how it could affect their repayments.
Eshita Gain is a digital journalist at Mint, where she joined in May 2025. She writes on corporate developments, personal finance, markets, and business trends, with a focus on delivering timely and relevant stories to a broad audience. <br><br> While her core beat lies in business and finance, she is not confined to a single niche and frequently explores stories across domains, including international relations and policy developments. <br><br> She holds a postgraduate diploma in business and financial journalism by Bloomberg from the Asian College of Journalism (ACJ), Chennai. During her time there, she received rigorous training in tracking financial data, interpreting corporate filings, and reporting on business developments. She has pursued her graduation from St. Joseph’s University, Bengaluru in a multi-disciplinary course. Her majors included Journalism, International Relations, peace and conflict studies. <br><br> Eshita has previously worked in digital marketing, which enables her to write SEO friendly copies that are clear and engaging. <br><br> Her primary interest lies in breaking down complex subjects and writing clear, accessible copies that inform readers. She aims to bridge the gap between technical financial language and everyday understanding. Outside the newsroom, Eshita enjoys reading non-fiction, and exploring new places, constantly seeking fresh perspectives and stories beyond headlines.
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HomeMoneyPersonal FinanceHDFC Bank raises MCLR by 5-15 bps across all tenures: Check new lending rates and what they mean for your loan EMIs
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