Private sector lender HDFC Bank has increased its Marginal Cost of Funds-based Lending Rate (MCLR) by up to 10 basis points (bps) across select loan tenures, with the revised rates taking effect from June 8, 2026.
A basis point is one-hundredth of a percentage point, which means 100 bps equals one percentage point.
According to the bank’s latest update, MCLR rates now range between 8.05 per cent and 8.65 per cent, compared with the earlier range of 8.05 per cent to 8.60 per cent.
The revision comes just days after the Reserve Bank of India (RBI) kept the repo rate unchanged at 5.25 per cent in its monetary policy review announced on June 5, 2026.
What are the new HDFC Bank MCLR rates?
HDFC Bank has increased lending rates across most tenures, while keeping the one-month MCLR unchanged. The overnight MCLR has been raised by 5 bps to 8.10 per cent from 8.05 per cent. The one-month MCLR remains at 8.05 per cent.
The three-month MCLR has increased to 8.20 per cent from 8.15 per cent, while the six-month MCLR has gone up to 8.35 per cent from 8.30 per cent. The one-year MCLR, which is widely used as a benchmark for home and other retail loans, has been increased by 5 bps to 8.40 per cent.
The largest increase has been in the two-year MCLR, which has been raised by 10 bps to 8.55 per cent from 8.45 per cent. The three-year MCLR has also moved up by 5 bps to 8.65 per cent.
The latest MCLR rates effective June 8, 2026, are: Overnight 8.10 per cent, One month 8.05 per cent, Three months 8.20 per cent, Six months 8.35 per cent, One year 8.40 per cent, Two years 8.55 per cent and Three years 8.65 per cent.
What is MCLR and why is it important?
MCLR, or Marginal Cost of Funds-based Lending Rate, is the minimum interest rate below which a bank generally cannot lend, except in specific cases allowed by the RBI.
The RBI introduced the MCLR framework in April 2016 to improve the transmission of policy rate changes to borrowers. Many home loans, vehicle loans and personal loans sanctioned under the MCLR system are linked to these benchmark rates.
Whenever a bank changes its MCLR, the borrowing cost for customers with MCLR-linked loans may change when their interest rate reset date arrives.
How can this affect your home loan EMI?
The impact of the latest revision will depend on the type of loan and the reset period mentioned in the borrower’s agreement.
For instance, if a customer has a home loan linked to HDFC Bank’s one-year MCLR and the loan is due for its annual reset after June 8, 2026, the applicable interest rate may increase by 5 basis points, subject to the fixed spread over MCLR.
In such cases, the borrower may either see a small increase in the monthly EMI or a slight extension in the loan tenure if the EMI amount is kept unchanged.
For example, a borrower with an outstanding home loan of Rs 50 lakh and a remaining tenure of 20 years may experience only a marginal increase in the monthly instalment following a 5 bps rise in the benchmark rate. The actual impact will vary depending on the outstanding balance, remaining tenure and the spread applicable to the loan.
What about HDFC Bank’s base rate and FD interest rates?
Apart from the MCLR revision, HDFC Bank has left its other benchmark rates unchanged. The bank’s base rate continues at 8.80 per cent, effective December 26, 2025, while its benchmark prime lending rate (BPLR) remains at 17.30 per cent per annum.
HDFC Bank has also retained its existing fixed deposit (FD) interest rates. For deposits below Rs 3 crore, general customers can earn between 2.75 per cent and 6.50 per cent, while senior citizens can earn between 3.25 per cent and 7.00 per cent.
The highest FD rate for general customers is 6.50 per cent for deposits with a tenure of three years and one day to less than four years and seven months. Senior citizens can earn up to 7.00 per cent for the same tenure.
The latest revision means that borrowing costs for customers with MCLR-linked loans may increase slightly, while deposit rates and other benchmark lending rates remain unchanged. Borrowers may need to check their next interest reset date to understand the actual impact on their loan repayments.
