HDFC Bank raises MCLR lending rate by up to 10 bps; check details

Private sector lender HDFC Bank has increased its Marginal Cost of Funds-based Lending Rate (MCLR) by up to 10 basis points (bps) across tenures. 1 bps is one-hundredth of a percentage rate. According to a notification on the bank’s website, the revised rates are applicable with effect from June 8.

Here are the new revised MCLR rates across tenure

Marginal Cost of Funds-based Lending Rate (MCLR), introduced in 2016, replaced the earlier base rate regime. This rate regime based on the marginal-cost of funds is the internal benchmark employed by banks and fixed by the RBI. Primarily, it is the minimum rate of interest on which the bankers can extend loans to consumers.

Generally, the RBI guidelines suggest that lenders cannot lend funds below the MCLR rate and hence the loan rate, including that for personal loans, is decided based on the incremental cost of arranging each rupee.

Now, as the implemented higher rates are already in place, borrowers with loans linked to the

MCLR-rate such as auto and other personal loans may see their monthly EMIs inch higher or loan tenures rise as and when their interest rate is reset next.

Other banks that have raised MCLR rate in June 2026

Some other banks including Bank of India and Indian Bank have also revised their MCLR rate in June. The 1 and 3-year MCLR rate at Bank of India is 8.75% and 8.9%, respectively. Also, Indian Bank has revised rates higher by 10 basis points, with the 1-year MCLR rate now revised higher to 8.85% as against the earlier 8.75%. The new rates are effective from June 3, 2026.