HDFC Bank Raises Lending Rates By Up To 15 Bps, Will Your Home And Personal Loan EMIs Increase?

Mumbai: HDFC Bank has increased its Marginal Cost of Funds-based Lending Rates (MCLR) by 5–15 basis points across all seven tenures, potentially raising borrowing costs for customers with MCLR-linked loans.

The revised rates, effective November 7, 2026, range between 7.85 percent and 8.70 percent, compared with the earlier range of 7.75 percent to 8.55 percent.

The revision follows the Reserve Bank of India's (RBI) decision to increase the repo rate by 25 basis points to 5.50 percent on October 7.

Revised Lending Rates

According to the bank's published rates, the highest increase of 15 basis points applies to six-month, one-year, two-year and three-year tenures.

The overnight MCLR has increased by five basis points, while the one-month and three-month rates have risen by 10 basis points each.

The revised lending rates are as follows:

Tenure Previous Revised Increase

Overnight 7.80 percent 7.85 percent 5 bps

1 month 7.75 percent 7.85 percent 10 bps

3 months 7.95 percent 8.05 percent 10 bps

6 months 8.15 percent 8.30 percent 15 bps

1 year 8.30 percent 8.45 percent 15 bps

2 years 8.40 percent 8.55 percent 15 bps

3 years 8.55 percent 8.70 percent 15 bps

One basis point represents 0.01 percentage point.

Impact On EMIs

The increase could affect customers holding home, personal, vehicle and other floating-rate loans linked to HDFC Bank's MCLR.

However, borrowers will not necessarily face higher monthly instalments immediately.

The impact depends on the loan's benchmark rate, the bank's applicable spread and the interest rate reset date.

For instance, borrowers with loans linked to the one-year MCLR may see their interest rates increase by 15 basis points at the next scheduled reset.

Depending on repayment conditions, the revision could increase monthly EMIs or extend the outstanding loan tenure.

Understanding MCLR

Introduced by the RBI in April 2016, MCLR replaced the earlier base rate framework to improve transparency in bank lending rates.

Banks calculate MCLR using funding costs and other prescribed factors.

Borrowers should review their loan agreements and repayment schedules to determine whether the latest revision will affect their monthly payments.

Loans linked to external benchmarks, including the repo rate, are not directly affected by this MCLR revision.

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