HDFC Bank gave a gift to its customers before Diwali, reducing interest rates, home loans became cheaper.

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HDFC Bank Lending Rates: HDFC Bank, one of the country’s leading private banks, has reduced its MCLR rates by 15 basis points. This will provide some relief on EMIs. The new rates range from 8.45% to 8.65% and are effective from October 7, 2025. Home and auto loan customers will benefit from this.

HDFC Bank Lending Rates: Just before Diwali, HDFC Bank, one of the country’s largest private banks, has provided significant relief to its customers. The bank has reduced its Marginal Cost of Funds-Based Lending Rates (MCLR). This will reduce EMIs on home loans, auto loans, and personal loans. The bank has reduced MCLR by 5 to 15 basis points (bps) for different tenures. These new rates are effective from October 7, 2025.

After this reduction, the bank’s new MCLR rates range from 8.45% to 8.65%. Previously, HDFC Bank’s MCLR rates were between 8.55% and 8.75%. This means interest rates have decreased by 10 to 15 basis points. It should be noted that MCLR is directly linked to loan rates. Banks cannot offer loans at rates lower than the MCLR. If banks reduce the MCLR, loan rates will automatically decrease. This directly benefits customers.

HDFC Bank’s New MCLR Rates

According to a report in the Economic Times, HDFC Bank’s overnight MCLR has been reduced from 8.55% to 8.45%. The bank has reduced its one-month MCLR from 8.55% to 8.40%, while the three-month MCLR has been reduced by 15 basis points from 8.60% to 8.45%. The six-month and one-year MCLR rates have been reduced by 10 basis points from 8.65% to 8.55%. The two-year MCLR has also been reduced from 8.70% to 8.60%, while the three-year MCLR has been reduced from 8.75% to 8.65%. This means that customers whose loan reset dates fall after October will now see a slight reduction in their EMIs.

What is MCLR?

MCLR (Marginal Cost of Funds-Based Lending Rate) is the minimum interest rate at which a bank can lend to a customer. It was introduced by the Reserve Bank of India (RBI) in 2016 to bring transparency to interest rates. When a bank’s funding costs decrease or liquidity in the system increases, the bank reduces the MCLR. Based on this, the EMI of floating rate loans (such as home loans, business loans, etc.) also fluctuates. Whenever a bank reduces its MCLR, all loan rates linked to it also fall. This means that customers whose loans are linked to MCLR benefit from the reduction in interest rates in their EMIs.

Learn how MCLR is determined?

HDFC Bank’s current base rate is 8.90%, effective September 19, 2025. The bank’s benchmark prime lending rate (BPLR), or standard interest rate, is set at 17.40% per annum. To determine MCLR, the bank considers interest rates on deposits, the repo rate, operational costs, and the cost of CRR (cash reserve ratio). When the RBI changes the repo rate, it impacts the MCLR.

What are the new home loan interest rates?

HDFC Bank’s home loan interest rates are now linked to the repo rate. According to the bank, the rates for salaried and self-employed individuals range from 7.90% to 13.20%. This means that if the RBI further reduces the repo rate, the bank may also reduce its interest rates further, further reducing customers’ EMIs.

How much interest is being earned on fixed deposits?

HDFC Bank offers its customers fixed deposit (FD) interest rates ranging from 2.75% to 6.60%. Senior citizens receive interest rates ranging from 3.25% to 7.10%. The highest interest rates are offered on FDs with tenures of less than 18 months and less than 21 months. These rates are effective from June 25, 2025.

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