HDFC Bank cuts MCLR, making loans a bit cheaper

Business Jan 08, 2026

HDFC Bank just lowered its Marginal Cost of Funds-based Lending Rates (MCLR) by up to 5 basis points, starting January 7, 2026.
If you have a loan linked to MCLR, this means your borrowing costs could drop a little.

What's changed with the rates?

The overnight and one-month MCLR now sit at 8.25% (down from 8.30%), and the three-month rate drops to 8.30%.
The six-month rate stays at 8.40%.
The key one-year MCLR—which often decides retail loan pricing—has been trimmed from 8.45% to 8.40%.

Why should you care?

If you're paying off a home, personal, or business loan tied to these rates, your EMIs might get slightly lighter after this update.
HDFC's base rate hasn't changed (still at 8.90%), so loans linked to MCLR will see the benefit of the rate cut, while the base rate remains unchanged.