Why HDFC Bank Lowered Its Marginal Cost of Funds-Based Lending Rates
HDFC Bank cut its MCLR by up to 10 basis points across select tenures, effective September 7, lowering rates to 7.90 to 8.60 per cent. Additionally, senior citizen fixed deposit rates were revised up to 7.10 per cent. Borrowers with MCLR-linked loans may see a change in their interest rate and EMI after the reset date.
HDFC Bank has reduced its Marginal Cost of Funds-based Lending Rates (MCLR) by up to 10 basis points (bps) across select tenures, offering relief to borrowers whose loans are linked to the MCLR regime. The revised rates came into effect today, September 7.
Revised Lending Rates and Impact
Following the revision, HDFC Bank’s MCLR rates range from 7.90 per cent to 8.60 per cent, compared to the previous range of 8 per cent to 8.65 per cent. A change in MCLR does not necessarily mean your home loan EMI will increase or decrease immediately. Accident Caught on Camera in Bengaluru: HDFC Bank Employee Killed by Speeding Bullet Bike While Out for Lunch in Rajajinagar, Video Surfaces.
The impact depends on whether your loan is linked to the MCLR and when its interest rate is due for reset. Borrowers with MCLR-linked loans may see a change in their interest rate and EMI after the reset date. However, newer floating-rate home loans are generally linked to external benchmarks, meaning changes in MCLR may not directly affect their EMIs.
| Loan Tenure | New Rate (September 2026) | Previous Rate (August 2026) | Rate Cut / Change |
| Overnight | 7.90 per cent | 8.00 per cent | 10 bps |
| 1 Month | 7.90 per cet | 8.00 per cent | 10 bps |
| 3 Months | 8.05 per cet | 8.15 per cet | 10 bps |
| 6 Months | 8.25 per cet | 8.30 per cet | 5 bps |
| 1 Year | 8.35 per cet | 8.40 per cet | 5 bps |
| 2 Years | 8.45 per cet | 8.55 per cet | 10 bps |
| 3 Years | 8.60 per cet | 8.65 per cet | 5 bps |
Updates to Fixed Deposit Rates
Alongside the lending rate cuts, HDFC Bank adjusted its fixed deposit structure. The bank is now offering senior citizens a revised peak interest rate of 7.10 per cent on deposits with a tenure ranging from 3 years 1 day to less than 4 years 7 months, a slight increase from the previous 7 per cent offered in the same bucket.
(The above story first appeared on LatestLY on Sep 07, 2026 06:31 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
