HDFC Bank Lowers MCLR: Home Loan, Car Loan, Personal Loan Borrowers to Benefit Soon

HDFC Bank has reduced its lending benchmark, the MCLR, offering possible EMI relief for borrowers.

It sounds simple, when interest rates go down, EMIs usually become smaller too. For HDFC Bank customers, this happens when their loan reset date comes. The recent MCLR cut will help reduce the cost of home, car, and personal loans. Customers will see the benefit as their reset cycle arrives in the coming months.

HDFC Bank Lowers MCLR: What’s Changed This Time?

On 7 November 2025, HDFC Bank quietly trimmed its MCLR, Marginal Cost of Funds Based Lending Rate, across a few tenures. Only by 5 to 10 basis points. Not massive, but enough to bring some difference to long-term borrowers.

The bank’s updated MCLR now ranges between 8.35% and 8.60%. Earlier, it was 8.45% to 8.65%. This came after the bank’s deposit base rose to ₹27.1 lakh crore, up 15.1% year-on-year, and credit growth touched 9.9%, as mentioned in a LoansJagat’s article.

Still, not everyone will notice the change right away.

How HDFC Bank’s Home Loan, Car Loan, and Personal Loan Borrowers Are Affected?

Here’s how the new interest rates for home loans look across tenures. Not drastic, but they add up for larger loans.
 

Anyone with a home loan, car loan, or personal loan tied to MCLR will see a drop only on their next loan reset date. That could be 3, 6 or even 12 months away. So for now, EMIs won’t change. Feels slow, but that’s how it works.

What Is MCLR And How Does It Affect Loan EMIs?

MCLR is the minimum interest rate below which banks usually can’t lend. It replaced the old base rate system in 2016.

Every MCLR-linked loan has a reset period. Until that date comes, your interest rate doesn’t change. Even if the MCLR drops today.

Take a look below, it breaks down the loan types and what changes to expect:
 

Most HDFC Bank personal loans carry a higher spread. Their average APR in Q2 FY26 was 11.32%, with highs touching 56.24%. Small MCLR cuts won’t shake that much.

What Past Patterns Reveal About HDFC Bank’s Strategy?

Some banks moved to repo-linked loans fast. Others, like HDFC Bank, still keep a good share of loans on MCLR. That’s why this move still matters. But remember, only loans tied to MCLR feel the rate change. Not the rest. So check your papers if unsure.

Conclusion 

If your HDFC Bank home loan, car loan, or personal loan is MCLR-linked, check your reset schedule. Only after that date will the new rate apply automatically. For new borrowers, though, the reduced MCLR applies right away, meaning slightly cheaper EMIs from day one.

The HDFC Bank rate cut may seem small today, but over the life of a home loan, car loan, or personal loan, even a fractional drop can save thousands of rupees. Patience often pays more than negotiation.

 

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LoansJagat Team

‘Simplify Finance for Everyone.’ This is the common goal of our team, as we try to explain any topic with relatable examples. From personal to business finance, managing EMIs to becoming debt-free, we do extensive research on each and every parameter, so you don’t have to. Scroll up and have a look at what 15+ years of experience in the BFSI sector looks like.