HDFC Bank raises MCLR by 5-15 bps across all tenures: Check new lending rates and what they mean for your loan EMIs

HDFC Bank Lifts MCLR Across All Tenures

HDFC Bank has raised its marginal cost of funds-based lending rate (MCLR) by 5 to 15 basis points across all seven tenures, with the revised rates taking effect from Saturday, November 7. After the revision, the bank's MCLR now sits in the range of 7.85% to 8.70%, up from 7.75% to 8.55% previously. One basis point equals one-hundredth of a percentage point.

The increase is sharper at the longer end. The six-month, one-year, two-year and three-year MCLR each moved up by 15 basis points. The revision follows the Reserve Bank of India's decision to raise the policy repo rate by 25 basis points, from 5.25% to 5.50%, on October 7, 2026, roughly a month before the bank's move.

Why This Matters For Borrowers

MCLR is the internal benchmark banks use to set minimum lending rates, a framework mandated by the RBI and introduced in April 2016 to replace the older base rate system. The aim was to make interest rate transmission more transparent and linked to market conditions. Banks revise MCLR periodically in line with changes in their funding costs and the repo rate set by the RBI's monetary policy committee.

For a loan priced against MCLR, the applicable rate is the bank's prevailing MCLR plus a spread or markup fixed by the lender. When MCLR rises, borrowing costs typically follow for customers whose home, personal, auto and other floating-rate loans are tied to this benchmark.

What To Watch Next

The pass-through is not automatic or uniform. The actual impact depends on which benchmark the loan is linked to, the spread applied, and the interest rate reset date written into the loan agreement. For instance, a home loan linked to the one-year MCLR would see the revised rate applied only at its next annual reset date. Where a 15 basis point rise in MCLR applies, the borrower's interest rate could increase by the same margin, subject to the loan terms.

Depending on the repayment structure and the agreement, the higher rate may tran…