**HDFC Bank Cuts MCLR: How Much Could Your EMIs Drop?**
*By Mudit Dube | Oct 07, 2025, 04:30 PM*
HDFC Bank has announced a reduction in its Marginal Cost of Funds-based Lending Rates (MCLR), a move that is set to benefit borrowers with loans linked to this benchmark. The bank has lowered the MCLR by up to 15 basis points (bps) across certain loan tenures. (For context, one basis point equals one-hundredth of a percentage point.)
### Revised MCLR Rates
Following the revision, HDFC Bank’s MCLR rates now range between **8.45% and 8.65%**, depending on the loan tenure. Here are the updated rates in detail:
– **Overnight MCLR** has been cut by 10 bps, from **8.55% to 8.45%**.
– **One-month MCLR** reduced from **8.55% to 8.40%**.
– **Three-month MCLR** cut by 15 bps, down from **8.60% to 8.45%**.
– Both **six-month and one-year MCLR rates** have been lowered by 10 bps each, from **8.65% to 8.55%**.
### What is MCLR?
The Marginal Cost of Funds-based Lending Rate (MCLR) is the minimum interest rate a bank must charge on a loan. It determines the base interest rate applicable to loans and generally remains fixed for borrowers unless otherwise directed by the Reserve Bank of India (RBI).
The RBI introduced MCLR in 2016 as part of its initiative to improve the transmission of monetary policy rates into lending rates, ensuring that changes in the RBI’s policy rates are more effectively reflected in the interest rates charged by banks.
### Impact on Borrowers
With these reductions, borrowers with loans linked to HDFC Bank’s MCLR can expect a decrease in their Equated Monthly Installments (EMIs), easing their repayment burden. The extent of the EMI drop will depend on the loan tenure and outstanding principal amount.
Stay tuned for more updates on lending rates and financial news.
https://www.newsbytesapp.com/news/business/hdfc-bank-slashes-mclr-by-up-to-15-bps/story
