HDFC Bank has cut MCLR rates across tenures from October 7, 2026. Check the latest rates from 7.75% to 8.55% and what they mean for borrowers.

HDFC Bank has revised its Marginal Cost of Funds-Based Lending Rates (MCLR) across different loan tenures, with the updated rates taking effect from October 7, 2026. The HDFC Bank MCLR rates now range from 7.75% to 8.55%, depending on the applicable benchmark tenure.

The revision is particularly relevant for borrowers whose loans are linked to MCLR, as any change in the benchmark rate can influence the interest rate applicable to their loans when the reset date arrives.

HDFC Bank MCLR rates from October 7

Under the latest revision, the overnight MCLR has been set at 7.80%, while the one-month MCLR stands at 7.75%. The three-month benchmark is now 7.95%.

For longer tenures, the six-month MCLR has been revised to 8.15%. The one-year MCLR stands at 8.30%, while the two-year and three-year rates are 8.40% and 8.55%, respectively.

Tenure MCLR from October 7, 2026
Overnight 7.80%
1 Month 7.75%
3 Months 7.95%
6 Months 8.15%
1 Year 8.30%
2 Years 8.40%
3 Years 8.55%

How much have the rates changed?

Before the latest revision, HDFC Bank’s September 2026 MCLR stood at 7.90% for overnight and one-month tenures. The three-month rate was 8.05%, while the six-month MCLR was 8.25%.

The one-year MCLR was 8.35%, with the two-year and three-year benchmarks at 8.45% and 8.60%, respectively. HDFC Bank’s official rate page lists these September rates as the applicable MCLR effective September 7, 2026.

The latest revision therefore represents a reduction of 10 basis points across each of the listed tenures.

What does MCLR mean for borrowers?

MCLR is an internal benchmark used by banks for pricing certain loans. The interest rate ultimately charged to a borrower generally consists of the applicable MCLR along with the spread or margin determined by the lender.

As a result, a reduction in HDFC Bank MCLR rates does not automatically mean that every borrower will immediately see a corresponding reduction in their loan interest rate.

The actual impact depends on the benchmark linked to the loan, the spread applicable to the borrower, the reset frequency and the reset date mentioned in the loan agreement.

Will EMIs come down after the MCLR cut?

For borrowers whose loans are linked to the revised MCLR, a lower applicable benchmark could reduce the interest burden when the loan rate is reset. Depending on the loan terms and the lender’s method of adjustment, the benefit could be reflected through a lower EMI, a shorter repayment period or a combination of the two.

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However, borrowers should not assume that the change will be reflected immediately. The reset date and benchmark specified in the loan agreement determine when the revised rate becomes relevant.

RBI raises repo rate to 5.5%

The HDFC Bank rate revision comes on the same day as the Reserve Bank of India’s October monetary policy decision. The RBI’s Monetary Policy Committee raised the repo rate by 25 basis points to 5.50% on October 7, 2026. It was the first repo-rate increase since February 2023, and the central bank also shifted its policy stance to “calibrated tightening.”

However, MCLR and the RBI’s policy repo rate are different benchmarks. Borrowers should therefore look at the specific benchmark attached to their loan before assessing how either rate change affects their repayment.

What should existing HDFC Bank borrowers check?

Borrowers should first find out which benchmark is linked to their loan. They should then check the applicable spread and reset frequency mentioned in the loan documents.

It is also important to identify the next reset date. A borrower whose loan resets later may not immediately see the effect of the latest HDFC Bank MCLR rates.

Those planning to take a new loan should compare the final interest rate offered by the bank rather than focusing only on the MCLR. Processing fees, spread, reset terms and other charges can influence the overall cost of borrowing.

Key takeaway for borrowers

The latest HDFC Bank MCLR rates range between 7.75% and 8.55% across the different tenures from October 7. The revision could affect borrowers whose loans are linked to MCLR, but the actual benefit will depend on the loan’s benchmark, spread and reset schedule.

Borrowers should review their loan documents and calculate the potential impact based on their individual terms rather than assuming that the benchmark change will automatically result in an immediate EMI reduction.

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