Now Reading: HDFC Bank cuts MCLR by 5 bps; EMI relief depends on loan type
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HDFC Bank cuts MCLR by 5 bps; EMI relief depends on loan type
HDFC Bank has reduced its MCLR by 5 basis points across six of seven loan tenures, effective August 7, 2026. The one-year MCLR fell from 8.45 per cent to 8.40 per cent,…
The Story in Brief
HDFC Bank has reduced its MCLR by 5 basis points across six of seven loan tenures, effective August 7, 2026. The one-year MCLR fell from 8.45 per cent to 8.40 per cent, and the overall MCLR range now stands at 8 per cent to 8.65 per cent. The two-year MCLR remains unchanged at 8.55 per cent. The cut comes after the RBI paused the repo rate at 5.25 per cent.
The reduction does not automatically lower EMIs for all borrowers. For older loans linked to MCLR, the benefit depends on the spread charged and the reset date specified in the loan agreement. Newer floating-rate retail loans, especially home loans, are linked to external benchmarks like the repo rate, so the MCLR move does not directly affect them. Borrowers must check their loan benchmark, spread, and next reset date to know if their EMI will fall.
The Indian Opinion
Headlines scream 'loan cheaper' at every marginal rate cut, but the fine print rarely gets a glance. Borrowers need to stop assuming a bank's MCLR tweak instantly lowers their EMI. The real test is simple: check whether your loan is tied to MCLR or an external benchmark, and note the reset date. Without those two facts, a 5 bps cut is just a number. Until borrowers demand clarity on spread and reset frequency, lenders will keep announcing cuts that barely touch monthly outgoings.
Sources (2): timesnownews.com, news.abplive.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
