HDFC Bank Home Loan Interest Rates: EMIs To Fall? HDFC Cuts Key Lending Rates On Tenures; Full Details

Home loan EMIs are likely to fall going ahead at HDFC Bank. The largest bank of India has trimmed its benchmark lending rates, called MCLR on selective tenures. The cut is to the tune of 10 basis points and has come into effect from November 7, 2025.

HDFC Bank MCLR Rates:

With effect from Friday, HDFC Bank lowered its MCLR rates by 10 basis points. Now, MCLR is at 8.35% on overnight tenure from earlier 8.35%. The bank also cut one-month MCLR to 8.35% from previous rate of 8.45%. Meanwhile, the six-month MCLR is reduced by 10 bps to 8.45% from earlier 8.55%.

However, on other tenures MCLR is reduced by 5 basis points. For instance, MCLR at HDFC Bank on three-months tenure is 8.40% from earlier 8.45%. Meanwhile, the MCLR rate on 1-year tenure is cut to 8.50% from earlier 8.55%. For the 2-year tenure, MCLR has decreased to 8.55% from earlier 8.60%. Lastly, the three-years tenure now has an MCLR of 8.60% from the previous 8.65%.

What is MCLR?

The full form of MCLR i.e. Marginal Cost of the Fund-Based Lending Rate is the minimum interest rate a financial institution needs to charge for a specific loan. It dictates the lower limit of the interest rate for a loan. This rate limit is set in stone for borrowers unless specified otherwise by the Reserve Bank of India, as per HDFC Bank's website.

MCLR rates can be changed depending upon the revision in the repo rate. MCLR varies from bank to bank. Launched from April 2016, MCLR replaced their earlier benchmark called base rate. However, majority of lending rates have been shifted to an external benchmark or repo-rate lending rates by banks with effect from October 1, 2019, replacing MCLR rates.

Hence, there are certain limitations to MCLR rates that are decided by banks. As per ClearTax's website, here's what they are:

1. Delayed Transmission: Rate changes don't reflect immediately in your EMI-they kick in only after the reset period.

2. Still Partially Administered: While more transparent than the base rate, it still gives banks some leeway in pricing loans.

3. Frequent Reset Clauses Vary: Some banks reset every six months, others annually, which may delay rate benefits.

4. RLLR Has Overtaken It: For many borrowers, repo-linked loans now offer more transparent and faster transmission of rate cuts than MCLR.

Nonetheless, a lower MCLR signals at lower interest rates across term loans including personal, home and vehicle loans. Hence, EMIs are likely to get cheaper.

HDFC Bank Home Loan Interest Rates:

Since RBI has kept repo rate at 5.5% since June 2025 policy, banks have also revised their home loan rates accordingly. Under HDFC Bank's special housing loan for both self employed and salaried individuals, home loan rates vary from 7.90% to 13.20%.

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