HDFC Bank MCLR: The country’s largest private sector bank HDFC has reduced MCLR today on 7 May 2025. HDFC Bank has cut MCLR by 0.10 percent to 0.15 percent. Due to reduction in MCLR, EMI of home, car and personal loan is reduced
HDFC Bank MCLR: The country’s largest private sector bank HDFC has reduced MCLR today on 7 May 2025. HDFC Bank has cut MCLR by 0.10 percent to 0.15 percent. Due to reduction in MCLR, EMI of home, car and personal loan is reduced. After the Reserve Bank of India cut the repo rate twice, most banks are reducing interest on FD. Also, many banks have also cut MCLR.
HDFC Bank reduced MCLR
The interest on home, car and personal loan is decided on the basis of MCLR. HDFC has reduced MCLR by 0.10% to 0.15% on all periods. The new MCLR rate of HDFC Bank has come into effect from today, 7 May 2025.
| period | New MCLR (7 May 2025) | Old MCLR |
| Ovenite | 9.00% | 9.10% |
| one month | 9.00% | 9.10% |
| Three Months | 9.05% | 9.20% |
| Six Months | 9.15% | 9.30% |
| 1 year | 9.15% | 9.30% |
| 2 years | 9.20% | 9.30% |
| 3 year | 9.20% | 9.35% |
HDFC Bank New MCLR Rates – Effective from 7th May 2025
HDFC Bank’s overnight MCLR is 9.00%. One month MCLR has been reduced to 9.00%. Three month rate has been reduced to 9.05%. Six month and one year rate has been reduced to 9.15%. It was earlier 9.30%. Thirty year MCLR has been reduced to 9.29%.
Effect of increasing or decreasing MCLR
Whenever a bank changes its MCLR (Marginal Cost of Funds Based Lending Rate), it directly impacts the EMI of floating rate loans like home loans, personal loans and car loans.
If the bank increases the MCLR, then the interest rate of the loan increases. This means that you will have to pay more EMI every month. However, if the bank reduces the MCLR, then the interest rates decrease and your EMI also decreases. This also benefits those who want to take a new loan, because they can get a cheaper loan than before.
How is MCLR decided?
Banks consider several factors to determine MCLR, such as deposit rate, repo rate, operational cost and cash reserve ratio (CRR). When RBI changes the repo rate, it directly affects MCLR. If the repo rate decreases, banks can also reduce MCLR, which can make loans cheaper. On the other hand, if the repo rate increases, MCLR also increases and the loan EMI becomes expensive.
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