HDFC Bank has increased its Marginal Cost of Funds-Based Lending Rates (MCLR) by 5 to 15 basis points across all seven tenures, potentially increasing borrowing costs for customers with loans linked to the benchmark. The revised rates came into effect on November 7, 2026, taking the bank’s MCLR range to 7.85%–8.70%, compared with 7.75%–8.55% previously.
The increase could affect existing home loan, personal loan and other retail loan borrowers whose interest rates are linked to MCLR. However, the revision does not mean every HDFC Bank customer will immediately face a higher EMI. The actual impact will depend on the loan’s benchmark, applicable spread and interest rate reset date.
HDFC Bank’s New MCLR Rates From November 7
The bank has increased its MCLR across overnight, one-month, three-month, six-month, one-year, two-year and three-year tenures.
The six-month and longer-term benchmarks have seen increases of 15 basis points, while the overnight rate has risen by 5 basis points.
Here is the comparison between the earlier and revised rates:
| MCLR tenure | Earlier rate | New rate | Increase |
|---|---|---|---|
| Overnight | 7.80% | 7.85% | 5 bps |
| 1 month | 7.75% | 7.85% | 10 bps |
| 3 months | 7.95% | 8.05% | 10 bps |
| 6 months | 8.15% | 8.30% | 15 bps |
| 1 year | 8.30% | 8.45% | 15 bps |
| 2 years | 8.40% | 8.55% | 15 bps |
| 3 years | 8.55% | 8.70% | 15 bps |
A basis point represents one-hundredth of a percentage point. Therefore, a 15-basis-point increase is equivalent to a 0.15-percentage-point rise in the lending benchmark.
The revised structure means HDFC Bank’s highest MCLR now stands at 8.70% for the three-year tenure.
Which HDFC Bank Borrowers Will Be Affected?
The increase primarily affects customers whose existing loans are linked to the bank’s MCLR.
These may include:
- Home loan borrowers: Customers with MCLR-linked housing loans could face higher interest costs when their rates are reset.
- Personal loan borrowers: Existing personal loans linked to MCLR may become more expensive under the revised benchmark.
- Other retail borrowers: Customers with eligible loans linked to the revised MCLR may also be affected, depending on their agreements.
However, borrowers should not assume that their interest rate will increase immediately on November 7. The revised benchmark generally affects a loan when its scheduled reset date arrives.
Customers whose loans are linked to other benchmarks, such as the repo rate or an external benchmark, will not automatically be affected by this particular MCLR revision.
Will Your Home Loan EMI Increase?
The latest hike could increase monthly repayments for borrowers with MCLR-linked home loans, but the actual change will depend on the outstanding loan amount, remaining tenure, existing interest rate and reset schedule.
Banks generally have two ways to reflect a higher interest rate in a floating-rate loan:
- Increase the EMI: The monthly payment rises while the repayment period remains broadly unchanged.
- Extend the loan tenure: The EMI may remain similar, but the borrower takes longer to repay the outstanding amount and pays more interest over time.
For example, consider a borrower with an outstanding home loan of ₹50 lakh and 20 years remaining. If the applicable interest rate increases, the EMI will generally rise if the bank keeps the repayment period unchanged.
The exact increase cannot be calculated from the MCLR revision alone. The borrower’s existing lending rate, loan spread and reset terms are also required.
What Is MCLR and How Does It Work?
MCLR stands for Marginal Cost of Funds-Based Lending Rate. It is an internal benchmark used by banks to determine the minimum lending rate for certain loans.
Introduced by the Reserve Bank of India in April 2016, the MCLR framework was designed to make bank lending rates more responsive to changes in funding costs and monetary policy conditions.
Banks calculate MCLR using several components, including:
- Marginal cost of funds
- Negative carry on account of cash reserve ratio requirements
- Operating costs
- Tenor premium
A bank’s lending rate for an MCLR-linked loan is generally calculated by adding a spread to the applicable MCLR.
This means a change in the benchmark can influence the final interest rate paid by a borrower when the loan is reset.
What Should Existing HDFC Bank Borrowers Do?
Customers should first identify the benchmark linked to their loan. This information is generally available in the loan agreement, sanction letter or account statement.
Borrowers should then check the following:
- Whether their loan is linked to MCLR or an external benchmark.
- Which MCLR tenure applies to their loan.
- The next interest rate reset date.
- The spread charged over the benchmark.
- Whether the bank will increase the EMI or extend the repayment period.
Customers who are concerned about higher borrowing costs can also contact HDFC Bank to understand their revised repayment schedule and available loan options.
The Bigger Picture
HDFC Bank’s latest MCLR revision comes at a time when borrowing costs are becoming an important consideration for households and businesses. Even relatively small benchmark increases can add to the total interest paid over a long repayment period, particularly for borrowers with substantial outstanding balances.
The impact will not be uniform across the bank’s customer base. Borrowers with MCLR-linked loans will need to monitor their reset dates, while customers on repo-linked or other external benchmark arrangements should follow changes to their respective benchmarks instead.
Looking Ahead
The immediate effect of the November revision will depend on when individual MCLR-linked loans are due for repricing. Borrowers with upcoming reset dates may see changes in their interest rates sooner than customers whose next reset is several months away. The bank’s revised lending structure will therefore affect customers at different times rather than producing an identical increase in EMIs across all accounts.
For existing borrowers, understanding the loan benchmark and repayment terms will be essential to managing the additional cost. Customers should review their statements, confirm the applicable rate with the bank and assess whether a higher EMI or longer repayment period would be more suitable for their financial situation.
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SEO Title: HDFC Bank Hikes MCLR Rates by Up to 15 Bps: Check New Rates and Loan Impact
Meta Description: HDFC Bank has raised MCLR rates by 5–15 basis points from November 7, 2026. Check the new rates and how the hike may affect home and personal loans.
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