HDFC Bank Slashes MCLR From Sept 7: Second Rate Cut in a Row, Big Relief for Borrowers Ahead of Festive Season

HDFC Bank has announced a reduction in its Marginal Cost of Fund-based Lending Rates (MCLR) by up to 5 basis points, or 0.05%, on select loan slabs, effective September 7th. The reduction in MCLR will benefit borrowers with MCLR-linked home loans, car loans, and personal loans and will provide them some relief in their monthly EMIs.This is the second back-to-back MCLR cut by HDFC Bank, after a similar 5 basis point reduction in August 2025.

Latest HDFC Bank MCLR Update

Under the revised structure, the six-month and one-year MCLR have been cut from 8.70% to 8.65%, while the two-year MCLR now stands at 8.70%, down from 8.75%. Overnight and one-month MCLR remain unchanged at 8.55%, while the three-month MCLR stays at 8.60%. The long-tenure three-year MCLR continues at 8.75%.

Impact On Borrowers

For individuals whose loans are linked to MCLR, the interest rate will be reduced at their next reset period. This will result in slightly lower EMIs, making housing loans, personal loans, and auto loans more affordable. However, borrowers with loans tied to external benchmarks such as the RBI repo rate will not see any impact from this cut. Just ahead of the festive season, when demand for loans typically rises, this reduction in HDFC MCLR will be beneficial for borrowers. Since RBI policy rates are also stable, banks are expected to pass on marginal benefits to consumers.

HDFC Bank Q1 FY26 Results

HDFC Bank posted a strong set of numbers in its Q1 FY26 results. The bank's net profit rose 12% year-on-year to Rs. 18,155 crore, supported by a 5.4% jump in net interest income (NII) to Rs. 31,440 crore. Total revenue stood at Rs. 53,170 crore, boosted by a one-time gain of Rs. 9,130 crore from the partial stake sale in HDB Financial Services. Non-interest income also saw a big jump, up 80.6% to Rs 21,730 crore. However, provisions and contingencies climbed sharply to Rs. 14,440 crore compared to Rs. 2,602 crore a year earlier, showing a cautious approach to risk. On the asset quality front, gross NPA edged up to 1.4% from 1.33%, while net NPA rose slightly to 0.47% from 0.43%.