Athira Sethu
Kochi, 8 June 2026
Even as the Reserve Bank of India kept the repo rate unchanged at 5.25% in its June 2026 monetary policy review, HDFC Bank has increased its Marginal Cost of Funds-based Lending Rates (MCLR) across most tenures by 5 to 10 basis points, effective June 8, 2026. The move signals a modest increase in borrowing costs for customers whose loans are linked to MCLR, particularly in longer-tenure segments. While the changes are relatively small, they indicate that funding cost pressures continue to influence bank lending rates despite a stable policy rate environment.
The revision pushes HDFC Bank’s MCLR range to 8.05%-8.65%, compared with the earlier range of 8.05%-8.60%. The steepest increase was recorded in the 2-year MCLR, which rose by 10 basis points, while all other revised tenures saw a 5-basis-point increase. The 1-month MCLR remains unchanged.
HDFC Bank MCLR Revision at a Glance
| Tenor | MCLR (June 8, 2026) | MCLR (May 7, 2026) | Change (bps) |
| Overnight | 8.10% | 8.05% | +5 |
| 1 Month | 8.05% | 8.05% | No Change |
| 3 Months | 8.20% | 8.15% | +5 |
| 6 Months | 8.35% | 8.30% | +5 |
| 1 Year | 8.40% | 8.35% | +5 |
| 2 Years | 8.55% | 8.45% | +10 |
| 3 Years | 8.65% | 8.60% | +5 |
Impact on Borrowers
| Loan Benchmark | Previous Rate | New Rate | Change |
| 1-Year MCLR (commonly used for retail loans) | 8.35% | 8.40% | +5 bps |
| 2-Year MCLR | 8.45% | 8.55% | +10 bps |
| 3-Year MCLR | 8.60% | 8.65% | +5 bps |
