HDFC Bank Lending Rates After RBI Announcement: Has Bank Changed MCLR Rates? – Creditcares (2026)

The financial pulse of India shifted slightly this February. Following the latest Reserve Bank of India (RBI) announcement, HDFC Bank adjusted its Marginal Cost of Funds-based Lending Rate (MCLR) for select tenures. If you have a loan with India’s largest private sector bank, these shifts directly impact your monthly outflow.

This move follows a period of relative calm in the banking sector. The RBI’s Monetary Policy Committee (MPC) concluded its three-day meeting on February 6, 2026, deciding to keep the repo rate steady at 5.25%. This choice signals a shift to a “pause” phase after the central bank cut the repo rate by 25 basis points in December 2025.

For the average borrower, the question is simple: Will my EMI go down? The answer depends entirely on your loan’s benchmark and reset date. HDFC Bank’s latest move specifically targets the three-year tenure, offering a modest reduction of 5 basis points.

The RBI Context: Stability After a December Cut

The RBI’s decision to maintain the 5.25% repo rate was widely expected by market analysts. After the 25 basis point reduction in December 2025, the central bank is likely observing how that liquidity flows through the economy. Keeping the rate unchanged provides a predictable environment for both banks and borrowers.

A steady repo rate means that Repo-Linked Lending Rates (RLLR)—to which most modern home loans are tied—remain unchanged for now. If your loan is tied directly to the repo rate, your interest rate should stay the same as it was in January 2026. However, HDFC Bank’s internal benchmark, the MCLR, operates on a different logic.

HDFC Bank MCLR Revision: February 7, 2026

Effective February 7, 2026, HDFC Bank revised its MCLR across various tenures. The bank chose to lower the rate for select tenures by 5 basis points. A basis point represents one-hundredth of a percentage point.

Following this revision, the bank’s MCLR rates now range from 8.25% to 8.60%. Before this update, the range was 8.25% to 8.55%.

Breakdown of Current MCLR Rates by Tenure

The most notable change is in the three-year tenure. The bank reduced this rate by 5 basis points to 8.50% from the previous 8.55%. This reduction benefits long-term borrowers whose loans are specifically linked to this three-year regime.

What is MCLR and Why Does it Matter?

The RBI introduced the Marginal Cost of Funds-Based Lending Rate in 2016. It serves as the minimum interest rate a financial institution can charge for a specific loan. It sets the “floor” or lower limit for interest rates.

Before MCLR, banks used the Base Rate system. For those still on the older regime, the current HDFC Bank base rate is 8.80%, effective since December 26, 2025. Additionally, the benchmark Prime Lending Rate (BPLR) stands at 17.30% per annum as of the same date.

Most loans approved after April 2016 but before October 2019 are linked to MCLR. If you have an HDFC Bank loan from this era, your interest rate is likely the MCLR for a specific tenure (usually one year) plus a “spread.”

How the Reduction Impacts Your EMI

Interest rate changes on MCLR loans do not happen instantly. They occur on your “reset date.” For example, if you have a home loan with a one-year reset cycle that resets every March, a change made in February will only reflect in your March EMI.

Since the one-year MCLR remained steady at 8.40% in this February update, most annual reset borrowers will see no change in their interest costs this month. The 5 bps reduction is highly targeted at the three-year tenure. If your corporate or high-value loan is tied to the three-year MCLR, your costs will decrease slightly once your reset date arrives.

Fixed Deposits: The Saver’s Perspective

While borrowers watch lending rates, savers should keep an eye on deposit rates. As of December 17, 2025, HDFC Bank offers fixed deposit (FD) interest rates between 2.75% and 6.45% for general citizens.

Senior citizens receive a higher bracket, ranging from 3.25% to 6.95% for amounts below Rs 3 crore. The highest rates—6.45% for general citizens and 6.95% for senior citizens—are currently offered on FD tenures of 18 months to less than 3 years.

With the RBI holding repo rates at 5.25%, FD rates are expected to remain stable for the next quarter. If you are looking for predictable returns, locking in these rates before any future RBI cuts might be a sound strategy.

The Road Ahead: 2026-27 Economic Outlook

The timing of these rate adjustments coincides with significant economic events. The Union Budget for FY 2026-27 is a major focus for the financial sector. Markets are also tracking the draft Income Tax Rules for 2026, which may change taxable perquisite values for items like company cars and offer higher HRA benefits in select cities.

For HDFC Bank customers, the current environment is one of “watchful stability.” The slight reduction in the three-year MCLR indicates that the bank is willing to pass on some benefits to long-term borrowers even as the RBI maintains a pause.

Strategies for Borrowers in 2026

1. Check Your Benchmark: Verify if your loan is tied to MCLR or RLLR. If it is RLLR, your rate is steady following the RBI’s February pause.

2. Monitor Your Reset Date: Remember that MCLR changes only apply on the anniversary of your loan or the specified reset interval.

3. Consider Switching: If you are on the older Base Rate (8.80%) or a high MCLR spread, it may be time to discuss switching to a repo-linked rate with your bank manager.

4. Boost Your Credit Score: Lending rates often include a risk premium. Improving your score can help you negotiate a lower “spread” over the bank’s benchmark.

Detailed Analysis

The latest interest rate adjustments by HDFC Bank provide a significant look at how private lenders are reacting to the current monetary environment. Following the February 2026 Reserve Bank of India (RBI) announcement, HDFC Bank has revised its Marginal Cost of Funds-based Lending Rates (MCLR) for specific tenures. This movement is particularly noteworthy since the central bank decided to maintain the repo rate at 5.25%, yet HDFC Bank chose to lower its 3-year MCLR by 5 basis points.

HDFC Bank MCLR Structure as of February 7, 2026

The revised rates, which came into effect on February 7, 2026, show a mix of stability across short-term tenures and a reduction in long-term benchmarks. For borrowers planning for long-term credit, such as unsecured business loans for MSMEs, these changes impact the total cost of capital.

The 3-year MCLR is a benchmark for several large-ticket loans, including certain categories of vehicle loans and corporate credit. This reduction suggests that the bank is managing its long-term cost of funds more efficiently, even as the broader policy rates remain steady.

Impact Analysis: How a 5 BPS Cut Affects Your Loan

A 5 basis point (0.05%) reduction might seem minimal at first glance. For large loan amounts over extended periods, the savings accumulate into a noticeable figure. Borrowers can use an EMI calculator to see how these small shifts alter their monthly obligations.

Case Study 1: ₹50 Lakh Loan

Let us look at a borrower with a ₹50,00,000 loan amount linked to the 3-year MCLR with a remaining tenure of 15 years.

• At 8.55% (Previous Rate): The monthly EMI would be approximately ₹49,386.

• At 8.50% (New Rate): The monthly EMI drops to ₹49,237.

• Monthly Savings: ₹149.

• Annual Savings: ₹1,788.

• Total Interest Savings (15 years): ₹26,820.

Case Study 2: ₹1 Crore Loan

For a corporate or high-value borrower with a ₹1,00,00,000 loan over 15 years:

• Monthly Savings: ₹298.

• Annual Savings: ₹3,576.

• Total Interest Savings (15 years): ₹53,640.

While the monthly difference is equivalent to a few cups of coffee, the long-term reduction in the interest burden is significant for businesses looking to maintain lean operations. Companies in high-growth sectors, like those exploring new business ideas in Kolkata, benefit from every marginal decrease in borrowing costs.

Comparison with Other Major Banks (February 2026)

HDFC Bank’s latest rates place it in a competitive position compared to other market leaders like the State Bank of India (SBI) and Axis Bank. In the current landscape, HDFC’s long-term benchmarks are currently lower than those of its peers.

As shown in the table, HDFC Bank’s 3-year MCLR of 8.50% is 30 basis points lower than SBI and 35 basis points lower than Axis Bank. This makes HDFC a highly attractive option for long-term debt, especially for those seeking the lowest interest rate in India.

Understanding the Role of the Repo Rate

The RBI’s decision to keep the repo rate at 5.25% in February 2026 follows a series of cuts throughout 2025. In early 2025, the repo rate stood at 6.50%. A 25 bps cut in February 2025 and another 25 bps cut in April 2025 initiated a downward trend. By the end of 2025, the rate had reached its current 5.25% level.

The repo rate is the interest at which the RBI lends money to commercial banks. When this rate falls, the cost of funds for banks eventually decreases. The MCLR is an internal benchmark that banks use to set their lending rates, based on the marginal cost of borrowing these funds. Since October 2019, most new retail loans (Home, Auto, Personal) are linked to an external benchmark like the Repo Linked Lending Rate (RLLR). MCLR-linked loans are mostly older retail loans or specific business and corporate credit lines.

For businesses dealing with GST 2.0 impact and new slab rates, managing debt through the most efficient benchmark is a key financial strategy.

Why the 3-Year MCLR Matters

Most retail borrowers today are on RLLR, but the MCLR remains a pivotal benchmark for:

1. Corporate Loans: Many term loans for machinery or expansion are tied to the 1-year or 3-year MCLR.

2. Legacy Home Loans: Borrowers who took home loans before October 2019 might still be on the MCLR regime.

3. Vehicle Loans: Certain commercial vehicle finance options use the 3-year MCLR as a base.

A reduction in the 3-year tenure indicates that HDFC Bank expects its long-term liquidity to remain stable and affordable. This is a positive sign for the broader economy, suggesting that credit availability for capital expenditure remains high.

Actionable Tips for Borrowers

If you have an existing loan or are planning to take a new one, consider the following:

1. Check Your Benchmark: Determine if your loan is linked to MCLR or RLLR. If you are on an old MCLR plan with high rates, you might want to switch to the current external benchmark.

2. Monitor Reset Dates: MCLR-linked loans only see rate changes on their “reset date” (usually once a year or every six months). A rate cut in February might not show up on your statement until your specific reset month arrives.

3. Improve Credit Health: Lenders often charge a “spread” over the benchmark. A high credit score can help you negotiate a lower spread. Learn how to improve your CIBIL score immediately to gain better bargaining power.

4. Consider Refinancing: If your current bank is not passing on the benefits of the lower repo rate, look into balance transfer options.

5. Evaluate Collateral: For larger requirements, check loan against property eligibility to see if you can get lower rates by offering security.

For Borrowers and Small Businesses

Staying compliant and financially healthy is the best way to leverage lower rates. If you are managing a business or a personal portfolio in 2026, these resources can help:

• Small Business Support: If you are running a small business in Kolkata, staying on top of GST and banking updates is critical for growth.

• Credit Health: Learn how to improve your CIBIL score immediately to qualify for the best lending rates.

• Funding Options: For those needing capital, explore unsecured business loans for MSMEs to find competitive interest structures.

• Loan Planning: Use an EMI Calculator to see how a 5 basis point shift might change your long-term interest outflow.

• Property Finance: Understand loan against property eligibility if you plan to use equity to fund your next project.

• MSME Insights: Check the latest list of businesses in the MSME sector to see if you qualify for government-backed credit schemes.

• Large Scale Borrowing: For major expansions, look into unsecured business loans of up to 100 Cr.

• Managing Debt: If you are facing cash flow issues, learn how to use an overdraft loan for business effectively.

• Interest Rate Comparison: Find out which loan has the lowest interest rate in India to optimize your debt.

• Compliance: Stay updated on GST 2.0 impacts on small businesses to avoid penalties that can hurt your credit standing.

HDFC Bank Lending Rates: Frequently Asked Questions (FAQ)

1. What is the latest RBI repo rate as of February 2026?

The RBI kept the repo rate unchanged at 5.25% during its February 6, 2026, meeting.

2. When did HDFC Bank’s new lending rates become effective?

The revised HDFC Bank MCLR rates are applicable starting February 7, 2026.

3. Which loan tenure saw a rate reduction at HDFC Bank?

The bank reduced the MCLR on its three-year tenure by 5 basis points. Rates for other tenures like overnight, one-month, and one-year remained steady.

4. What is the current range of HDFC Bank’s MCLR?

Following the latest update, the MCLR rates range from 8.25% to 8.60% depending on the tenure of the loan.

5. What are the current MCLR rates for 6-month and 1-year tenures?

Both the six-month and one-year MCLRs are currently set at 8.40%.

6. Will my home loan EMI decrease immediately after this announcement?

If your home loan is tied to the repo rate (RLLR), there will be no change since the repo rate stayed at 5.25%. If it is tied to MCLR, the change will only reflect on your next reset date, provided your specific tenure rate was adjusted.

7. What is HDFC Bank’s current Base Rate?

As of December 26, 2025, the HDFC Bank base rate is 8.80%.

8. What is the highest FD interest rate offered by HDFC Bank right now?

The highest rate is 6.45% for general citizens and 6.95% for senior citizens, applicable on tenures ranging from 18 months to less than 3 years.

9. What is the Benchmark PLR for HDFC Bank?

Effective December 26, 2025, the benchmark Prime Lending Rate (BPLR) is 17.30% per annum.

10. Why did HDFC Bank lower its rates even though the RBI didn’t?

Banks adjust MCLR based on their own marginal cost of funds, which includes deposit costs and operating expenses. A bank might lower MCLR if its internal costs decrease, even if the RBI repo rate remains unchanged.

11. Has HDFC Bank reduced EMIs for all home loans? No. This specific reduction applies to the 3-year MCLR. Most new home loans are linked to the repo rate (RLLR). If your home loan is linked to RLLR, your EMI would only change if the RBI changes the repo rate. If your home loan is an older one linked to the 3-year MCLR, you will see a reduction on your next reset date.

12. What is the difference between MCLR and Repo Rate? The repo rate is set by the RBI and is an external benchmark. The MCLR is an internal benchmark calculated by each bank based on its own cost of funds, operating expenses, and profit margins.

13. When will the 5 bps cut reflect in my loan account? The change is effective from February 7, 2026. However, for existing borrowers, the new rate will only apply on the “reset date” mentioned in your loan agreement.

14. Is HDFC Bank’s interest rate lower than SBI’s? Currently, HDFC Bank’s 3-year MCLR (8.50%) is lower than SBI’s 3-year MCLR (8.80%). For 1-year tenures, HDFC is also lower (8.40% vs 8.70%).

15. Can I switch from MCLR to RLLR? Yes. Banks allow borrowers to switch from the MCLR regime to the external benchmark (RLLR/EBLR) regime, usually for a small administrative fee. This is often beneficial when policy rates are falling.

16. Does this rate change affect personal loans? Most personal loans are fixed-rate loans. If you have already taken a fixed-rate personal loan, your EMI will remain the same. If you are applying for a new loan, the bank may offer a lower rate based on the reduced MCLR.

17. How does the bank decide the 3-year MCLR? The bank calculates it based on the marginal cost of borrowing, the return on net worth, the cost of maintaining the Cash Reserve Ratio (CRR), and a “tenor premium” for the 3-year period.

18. Is it a good time to take a business loan? With HDFC reducing its long-term benchmarks and the repo rate being stable at a lower level of 5.25%, the cost of borrowing is currently quite favorable. You can look at options for an unsecured business loan of 100 Cr without collateral if you have a strong profile.

19. What should MSMEs do during this rate cycle? MSMEs should review their current debt. If you are using an overdraft loan for business, check the benchmark it is linked to. Switching to a cheaper benchmark can improve cash flow.

20. Where can I find the full list of businesses in the MSME sector? You can refer to the official list of businesses in the MSME sector to see if your enterprise qualifies for priority sector lending, which often comes with better interest rates.