If you are planning to take a loan shortly or you are already paying EMI of any of your loans, it is important to know that the country's largest private bank, HDFC Bank, has reduced its loan rates. In such a situation, people taking loans are going to benefit.
HDFC Bank has cut its Marginal Cost of Funds Based Lending Rate (MCLR) by 30 basis points. In such a situation, the loan interest rates have been reduced by 0.30 percent. This reduction is applicable to home loans, car loans and all other types of loans.
The new interest rates of HDFC Bank loans are applicable from 7 July 2025. The benefit of the new interest rates will be available only to those customers whose loans are linked to the repo rate, i.e. those who have taken loans at floating rates.
HDFC Bank's MCLR was earlier 9.05 percent for 1 year, which has now come down to 8.75 percent. MCLR for 6 months is 8.75 percent, and MCLR for 3 months is 8.75 percent. Also, MCLR for 1 month is 8.60 percent, which was earlier 8.90 percent.
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MCLR, i.e. Marginal Cost of Funds Based Lending Rate, is the interest rate at which a bank offers loans to its customers. This limit is decided according to the repo rate of the Reserve Bank of India, i.e. RBI. The 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. The RBI introduced the MCLR in 2016.
