HDFC Bank Raises Lending Rates By 15 Bps, Home & Personal Loan Borrowers May Face Higher EMIs
· Free Press Journal
Mumbai: HDFC Bank has increased its Marginal Cost of Funds-based Lending Rates (MCLR) by 5 to 15 basis points (bps) across different tenures, potentially raising borrowing costs for customers with MCLR-linked loans.
The revised rates came into effect on November 7, 2026, with the bank's MCLR now ranging between 7.85% and 8.70%, compared with 7.75% to 8.55% previously.
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New Lending Rates
According to the revised rate structure, the overnight MCLR has increased by 5 bps to 7.85 percent, while the one-month rate has risen by 10 bps to 7.85%.
The three-month MCLR has increased from 7.95 percent to 8.05 percent. Meanwhile, the six-month rate has climbed by 15 bps to 8.30 percent.
The one-year MCLR, commonly used as a benchmark for certain loans, has increased from 8.30% to 8.45%.
Similarly, the two-year rate has risen to 8.55%, while the three-year MCLR now stands at 8.70%.
Who Will Pay More?
The latest revision could affect existing home loan, personal loan and other retail loan borrowers whose interest rates are linked to HDFC Bank's MCLR.
However, higher lending rates will not automatically translate into increased monthly instalments for every borrower.
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Borrowers whose loans are due for an interest rate reset could experience higher EMIs or an extension of their repayment tenure.
Customers with loans linked to external benchmarks, including the RBI's repo rate, are not directly affected by this MCLR revision.
What Borrowers Should Check
MCLR represents the minimum benchmark lending rate below which banks generally cannot extend loans, except in permitted circumstances under RBI regulations.
CGTMSE Honours Top Banks & NBFCs For MSE Credit Growth, SBI & HDFC Bank Lead AwardsA basis point equals 0.01 percentage point, meaning a 15 bps increase represents a 0.15 percentage point rise.
Borrowers should review their loan statements, applicable interest rates and upcoming reset dates to understand the potential financial impact.
The revision may increase repayment obligations for affected customers.
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