HDFC Bank has raised its marginal cost of funds-based lending rate (MCLR) by between 5 and 15 basis points across tenures, effective 7 November 2026. The HDFC Bank MCLR hike takes the one-year rate, the benchmark most older home loans track, to 8.45% from 8.30%.
The move, reported on 10 November, means some home loan, personal loan and other retail borrowers whose loans are tied to the bank's MCLR could pay more once their rates reset.
The new HDFC Bank MCLR rates
After the revision, HDFC Bank's MCLR now ranges from 7.85% to 8.70%, compared with 7.75% to 8.55% earlier, according to the Free Press Journal.
The overnight rate is now 7.85% and the one-month rate is also 7.85%. The three-month MCLR has risen 10 basis points to 8.05%, the six-month rate is up 15 basis points to 8.30%, and the one-year rate is up 15 basis points to 8.45%.
For longer tenures, the two-year MCLR is now 8.55% and the three-year rate is 8.70%. One basis point is one-hundredth of a percentage point, so a 15 bps increase equals 0.15 percentage points.
Why lending rates are rising
The increase follows the Reserve Bank of India's October policy. At its 5–7 October 2026 meeting, the Monetary Policy Committee raised the repo rate by 25 basis points to 5.50% and changed its stance from neutral to 'calibrated tightening', according to PSU Connect.
The repo rate is the rate at which the RBI lends to banks. When it rises, banks' funding costs usually go up, and lenders revise their internal benchmarks such as MCLR. PSU Connect also reported that Bank of Baroda raised its MCLR across most tenors, effective 12 November.
What it means for your home loan EMI
Not every HDFC Bank borrower will see a change right away. The revision applies to loans linked to MCLR, and the new rate kicks in only on each loan's reset date, which is usually every six or twelve months. Loans linked to an external benchmark such as the repo rate are not directly affected by this particular change.
Depending on the loan agreement, a higher rate can show up either as a larger EMI or as a longer repayment period. The Free Press Journal noted that the hike will not automatically raise monthly instalments for every borrower.
As a rough illustration, on a ₹50 lakh loan over 20 years, a rise in the interest rate from 8.30% to 8.45% would increase the EMI from about ₹42,760 to about ₹43,233, or roughly ₹470 a month. This is a BrickBharat calculation; actual amounts depend on each borrower's spread, balance and remaining tenure.
What borrowers can do
Borrowers should check their loan statement to see which benchmark their loan follows and when the next reset is due. Those still on older MCLR-linked loans may want to compare their effective rate with what the bank offers on repo-linked loans, keeping any switching fees in mind.
Borrowers will also be watching whether other lenders follow with similar revisions in the coming weeks.
Sources
- Free Press Journal: HDFC Bank Raises Lending Rates By 15 Bps, Home & Personal Loan Borrowers May Face Higher EMIs — published 10 November 2026.
- PSU Connect: RBI Hikes Repo Rate by 25 bps to 5.50%; Switches Stance to Calibrated Tightening — published 24 October 2026.
Frequently asked questions
What is HDFC Bank's new one-year MCLR?
HDFC Bank's one-year MCLR is now 8.45%, up from 8.30%, effective 7 November 2026, according to the Free Press Journal.
Will my HDFC home loan EMI go up immediately?
Not necessarily. Only loans linked to HDFC Bank's MCLR are affected, and the new rate applies from each loan's reset date; repo-linked loans are not directly affected by this revision.
What is the RBI repo rate now?
The RBI raised the repo rate by 25 basis points to 5.50% at its 5–7 October 2026 policy meeting and changed its stance to 'calibrated tightening'.