HDFC Bank, India’s largest private sector lender, has officially revised its Marginal Cost of Funds-based Lending Rate (MCLR) across multiple tenures. The new rates came into effect on Tuesday, July 7, 2026.
While the bank has provided relief by lowering its overnight borrowing benchmark, it simultaneously increased rates for key longer-term tenures, creating a mixed impact for retail and corporate borrowers.
1. Updated HDFC Bank MCLR Structure
Following the July revision, HDFC Bank’s baseline lending rates now range between 8.05% and 8.70%:
| Loan Tenure | Old Rate (June 2026) | New Rate (July 7, 2026) | Change |
| Overnight | 8.10% | 8.05% | ↓ 5 basis points |
| 1-Month | 8.05% | 8.05% | No change |
| 3-Month | 8.20% | 8.20% | No change |
| 6-Month | 8.35% | 8.35% | No change |
| 1-Year | 8.40% | 8.45% | ↑ 5 basis points |
| 2-Year | 8.55% | 8.55% | No change |
| 3-Year | 8.65% | 8.70% | ↑ 5 basis points |
2. Who Benefits and Who Pays More?
The impact of this rate revision depends entirely on the specific benchmark your floating-rate loan is linked to:
- Short-Term Borrowers (Relief): The 5 basis point cut to the overnight MCLR reduces borrowing costs for very short-term credit facilities, micro-business loans, and overnight lines.
- Retail Home and Auto Loans (Increase): The critical 1-year MCLR—which serves as the core anchor for the vast majority of consumer retail home, auto, and personal loans—has been raised by 5 basis points to 8.45%.
- Corporate Borrowers (Increase): Long-term corporate borrowings and large-value capital loans linked to the 3-year benchmark will face a 5 basis point hike, climbing to 8.70%.
Note on Timing: Existing borrowers will not see an immediate adjustment in their Equated Monthly Installments (EMIs). The modified interest rates will only kick in on the next scheduled reset date specified in the individual loan agreements.
3. Parallel Benchmark Revisions
Alongside the tenure-specific MCLR adjustments, HDFC Bank executed separate revisions to its legacy lending benchmarks earlier in the cycle:
- Base Rate: Revised down to 8.70% per annum (effective June 24, 2026) from its prior 8.80% level.
- Benchmark Prime Lending Rate (BPLR): Trimmed down to 17.20% per annum from 17.30%.
The selective pricing changes come as Indian commercial banks continuously balance their credit margins against a steady Reserve Bank of India (RBI) repo rate environment.
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