HDFC Bank increases MCLR rates for loans

HDFC Bank has increased its Marginal Cost of Funds-based Lending Rates (MCLR) for all tenures for November 2026. According to a report by The Economic Times, due to this revision, customers whose loans are linked to MCLR may have to pay higher interest rates when the loans are reset. According to the bank's official website, these revised rates have come into effect from November 7, 2026.

Following these new changes, HDFC Bank's MCLR rates will now range between 7.85% and 8.70%. Previously, these rates were between 7.75% and 8.55% depending on the loan tenure. The MCLR has been increased by 5 basis points (bps) to 15 basis points depending on the loan tenure, where one basis point is one-hundredth of a percentage point.

Looking at the details of the new rates for various tenures, the overnight MCLR has been increased from 7.80% to 7.85%. The one-month MCLR has increased from 7.75% to 7.85%, while the three-month rate has increased from 7.95% to 8.05%. A higher increase has been seen for long-term loans. The six-month MCLR has been increased from 8.15% to 8.30% and the one-year MCLR from 8.30% to 8.45%. Additionally, the two-year and three-year MCLR rates have also been increased by 15 basis points each, resulting in the three-year rate increasing from 8.55% to 8.70%.

This change will particularly affect customers whose loans are linked to MCLR. This includes current home loan, personal loan, and other retail loan borrowers as per the loan agreement. However, not all customers will have to start paying higher EMIs immediately. It may take some time for banks to announce the increase in MCLR-linked loan rates. Customers should check the revised lending rates reset date given in their loan statements to know when this increase will be reflected in their repayments.

Comparing the rates of October 2026 and November 2026, there has been an increase of 5 bps in the overnight rate, 10 bps each in the one-month and three-month rates, and 15 bps each in the six-month, one-year, two-year, and three-year rates.

MCLR or Marginal Cost of Funds-based Lending Rate is the minimum lending rate of a bank, below which the bank cannot lend, except in certain permitted cases as per RBI guidelines.