HDFC Bank cuts lending rates on these tenures by up to 5 bps: Check latest loan rates

Sneha Kulkarni

, ET OnlineLast Updated: Aug 08, 2025, 12:11:10 PM IST

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HDFC Bank has reduced its Marginal Cost of Funds-based Lending Rates (MCLR) by up to 5 basis points on select loan tenures, effective August 7, 2025. The revised MCLR now ranges from 8.55% to 8.75%. The bank also announced that its home loan interest rates, linked to the Repo Rate, range between 7.90% and 13.20% for salaried and self-employed individuals.

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HDFC Bank lending rates

HDFC Bank has announced a reduction in its Marginal Cost of Funds-based Lending Rates (MCLR), which will benefit borrowers whose loans are linked to this benchmark. The bank has lowered the MCLR by up to 5 basis points (bps) on select loan tenures. A basis point is one-hundredth of a percentage point.

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Following this revision, HDFC Bank’s MCLR now ranges from 8.55% to 8.75%, depending on the loan tenure. This is a decrease from the previous range of 8.60% to 8.80%, which was applicable during July 2025. The revised MCLR rates have come into effect from August 7, 2025..

Latest HDFC Bank lending rates

The bank has reduced the overnight and one-month MCLR tenures by 5 bps, from 8.60% to 8.55%.

The three-month MCLR has been cut from 8.65% to 8.60%, down by 5 bps and the six-month MCLR has been reduced from 8.75% to 8.70%, down by 5 bps. The one-year MCLR rates have been reduced from 9.05% to 8.75%, down by 30 bps.

The two year- MCLR is unchanged at 8.75%. The three-year MCLR has been reduced from 8.80% to 8.75%, down by 5 bps.

Tenor	MCLR
Overnight	8.55%
1 Month	8.55%
3 Month	8.60%
6 Month	8.70%
1 Year	8.70%
2 Year	8.75%
3 Year	8.75%

What is MCLR

The Marginal Cost of the Fund-Based Lending Rate or the MCLR 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. The RBI introduced the MCLR in 2016.

RBI keeps repo rate unchanged

The Reserve Bank of India (RBI) kept the repo rate unchanged at its monetary policy meeting on August 6, 2025. Since February, the RBI has reduced the repo rate by 100 basis points or 1%.

HDFC home loan

The home loan interest rates are linked to the Repo Rate and are variable throughout the tenor of the loan. Special home loan rates for salaried and self-employed individuals range between 7.90% and 13.20% as on August 7, 2025.