Archive · 7 Oct 2026
HDFC Bank Cuts MCLR Rates Despite RBI Repo Rate Hike
HDFC Bank lowered the rates it uses for some loans.
The new rates began on October 7.
The biggest cut was for one-month loans, whose rate went down to 7.75%.
The one-year rate is now 8.30%.
But not everyone will see their monthly payment fall right away.
It depends on whether their loan uses MCLR and when the rate is reset.
The bank’s added charges and the loan’s terms also matter.
Loans tied to outside benchmarks such as the RBI repo rate are not directly changed by this MCLR cut.
This happened even though the RBI raised its repo rate by 25 basis points to 5.50%.
HDFC Bank cut its MCLR rates by 5 to 15 basis points across loan tenures.
The revised rates took effect on October 7.
The overnight MCLR fell to 7.80%, while the one-month rate dropped to 7.75%.
The one-year MCLR was reduced to 8.30%; the three-year rate is now 8.55%.
Borrowers benefit only if their loan is MCLR-linked, and the impact depends on reset timing and loan terms.
- Who
- HDFC Bank and borrowers with loans linked to its MCLR.
- What
- HDFC Bank reduced MCLR rates by 5 to 15 basis points across tenures.
- When
- The revised rates took effect on October 7; the article does not specify the year.
- Where
- India; the report is datelined Mumbai.
- Why
- The article does not state why HDFC Bank cut the rates.
MCLR-linked borrowers
Externally benchmarked borrowers
Who may be affected
MCLR-linked borrowers
Borrowers whose loans are linked to MCLR may receive a lower rate, depending on their reset date, the bank's spread, and loan terms.
Externally benchmarked borrowers
Borrowers whose loans are linked to external benchmarks, including the RBI repo rate, are not directly affected by this MCLR revision.
Effect on monthly payments
MCLR-linked borrowers
The MCLR cut could provide relief, but it does not guarantee an immediate or equal reduction in every borrower's EMI.
Externally benchmarked borrowers
The MCLR revision itself does not change rates determined separately using applicable external benchmarks.
- Effective date
- October 7
- Range of cuts
- 5 to 15 basis points
- Overnight MCLR
- 7.80%, down from 7.90%
- One-month MCLR
- 7.75%, down from 7.90%
- One-year MCLR
- 8.30%, down from 8.35%
- Three-year MCLR
- 8.55%, down from 8.60%
- RBI repo rate
- Raised by 25 basis points to 5.50%