The country’s largest private sector bank HDFC has increased the interest rates on loans. Due to this, now customers will have to pay higher EMI than before for home loan, car loan or personal loan. The bank has increased its Marginal Cost of Funds-Based Lending Rate (MCLR) by 5-10 basis points. The new rates are effective from tomorrow, June 8, 2026.
This decision will affect those customers whose home, car or personal loan is linked to MCLR. For these customers, the EMI amount or loan repayment period may increase. HDFC Bank took this decision after the monetary policy meeting of the Reserve Bank of India (RBI), in which the repo rate was maintained at 5.25%. However, this decision will not affect those loans which are directly linked to the RBI repo rate.
HDFC Bank’s new MCLR interest rates
The bank’s MCLR now ranges between 8.05% to 8.65% for different tenures.
Overnight: increased from 8.05% to 8.10%.
3-month MCLR: Now 8.20%.
6-month MCLR: increased to 8.35%.
1-year MCLR: increased to 8.40% from 8.35%.
2-year MCLR: increased to 8.55% from 8.45%.
3-year MCLR: Now maximum at 8.65%.
impact on customers
If your home loan, car loan or personal loan is linked to MCLR, your monthly EMI will automatically increase on the next reset date or the loan tenure will be extended.
If your loan is linked to an external benchmark – typically the RBI repo rate – then this increase will not affect you.