HDFC Bank Cuts Lending Rates After RBI Rate Cut, Check Latest Loan Rates In June 2025

HDFC Bank, India's leading private sector bank, has reduced in its Marginal Cost of Funds-based Lending Rates (MCLR) by 10 basis points across all loan tenures.

This move will benefit borrowers whose loans, such as home loans, car loans, and personal loans, are linked to this internal benchmark. The revised MCLR rates are effective from June 7, according to HDFC Bank website.

HDFC Bank made this move shortly after the Reserve Bank of India (RBI) reduced its repo rate by 50 basis points (0.50%) on Friday, June 6, 2025. This was the RBI's third rate cut in 2025.

When the RBI lowers the repo rate, it generally reduces the cost of funds for banks, allowing them to pass on these benefits to their customers through lower lending rates.

Why Did HDFC Bank Reduced Its Lending Rates?

HDFC Bank decided to reduce its lending rates in response to recent monetary policy changes by the Reserve Bank of India (RBI). The RBI slashed the repo rate by 50 basis points and also lowered the cash reserve ratio (CRR) by 1%-bringing it down to 3%. This adjustment has freed up approximately ₹2.5 lakh crore for banks to lend, with the goal of stimulating economic growth.

By cutting the repo rate, the RBI makes it less expensive for banks to borrow funds. In turn, this enables banks like HDFC to lower their lending rates, passing the benefit on to consumers through cheaper loans.

What Is MCLR and Why Does It Matter?

MCLR stands for Marginal Cost of Funds-based Lending Rate. Think of it as the lowest interest rate a bank can charge for most loans. It's a very important benchmark for loans with "floating" interest rates, meaning rates that can change over time. Home loans are a common example of floating-rate loans.

If you've taken a loan linked to the MCLR, a cut in this rate could mean either your Equated Monthly Installments (EMIs) go down or your loan gets repaid faster. However, this change depends on your loan's reset date and whether it's a fixed or floating rate loan.

HDFC Bank's New MCLR Rates at a Glance:

HDFC Bank has reduced its MCLR rates across different loan tenures by 0.10%:

Overnight and 1-month: Now 8.9% (Earlier 9%)
3-month: 8.95% (Earlier 9.05%)
6-month: 9.05% (Earlier 9.15%)
1-year: 9.05% (Earlier 9.15%)
2-year: 9.10% (Earlier 9.20%)
3-year: 9.10% (Earlier 9.20%)

HDFC Bank's MCLR rates now range from 8.90% to 9.10%, which is lower than the previous range of 9.00% to 9.20%. This reduction is expected to bring some relief to borrowers through lower monthly payments or allowing them to pay off their loans quicker.

If you have an MCLR-linked loan, it's a good idea to check with HDFC Bank about how these new rates will affect your specific loan.