HDFC Bank Reduces MCLR. Will Your Home Loan EMI Fall Next Month?

HDFC Bank has given borrowers a small but welcome relief. The lender has trimmed its lending rates on select tenures, reducing the MCLR by up to 10 basis points (bps). The change took effect on 7 November 2025.

People have been waiting for some good news on home loan rates. Finally, HDFC Bank has done it again. The bank has lowered its lending rates for select tenures, reducing the MCLR by up to 10 basis points (bps). The change took effect on 7 November 2025, as per The Economic Times report.

The HDFC Bank home loan interest rate reduction means borrowers tied to MCLR will pay slightly less each month. The new MCLR range now stands between 8.35% and 8.60%, compared to the earlier 8.45%–8.65%. It’s a small difference, but for large loans, it matters. Feels like a small step, but a welcome one.

Updated MCLR Rates: What Borrowers Should Know

HDFC Bank’s revised rates were listed in a GoodReturns report in November 2025. Here’s how the changes look on paper.
 

Borrowers under the MCLR system will see the change only after their loan reset date. That’s how banks apply such updates. 

Someone with a ₹50 lakh loan for 20 years could save a few hundred rupees every month. Small, but it helps. The MCLR cut impact on HDFC Bank borrowers depends entirely on which tenure their loan follows.

What Exactly Is MCLR?

The Marginal Cost of Funds-based Lending Rate (MCLR) is simply the minimum rate a bank can lend at. It’s tied to the cost of raising money. When the bank’s cost goes down, it can reduce this base rate. And that’s how borrowers get cheaper EMIs.

Those whose loans are linked to the Repo Rate Linked Lending Rate (RLLR) won’t see any change. These are different systems, and most new loans in India now follow external benchmarks. That’s how the market has shifted in recent years.

How This Move Fits The Broader Banking Trend

HDFC Bank isn’t alone. Other lenders like Punjab National Bank and Bank of Baroda also cut their MCLR by 5 bps in September 2025, as mentioned in Business Standard.
 

A LoansJagat report on Q2 FY26 showed HDFC Bank’s total advances grew 9.9% year-on-year, while deposits rose 15.1% to ₹27.1 lakh crore. It’s steady growth, even as rates fall a little. That’s how large banks maintain balance.

Comparing With Past Bank Responses

Earlier, HDFC Bank had made smaller cuts only on short-term rates. This time, the reduction covers overnight, one-month, and six-month terms together. RBI data on rbi.org.in shows average lending rates across Indian banks slipping gradually through 2025.

So maybe this pattern says something. HDFC Bank is staying cautious, adjusting slowly, keeping pace with the market instead of rushing ahead. That’s how Indian banking often works, slow but steady.

Conclusion 

The HDFC Bank home loan interest rate reduction may not sound huge, but it’s a positive signal for borrowers. Lower revised MCLR rates for HDFC Bank home loans could mean cheaper EMIs in early 2026.

Banks seem to be softening rates as liquidity improves. Borrowers just need patience. Sometimes, even a small cut makes a difference, it gives people a little breathing room. And in a market like India, that’s worth something.