If you are thinking of taking a home loan, car loan or personal loan, then this news is no less than good news for you. The country’s largest private bank HDFC has reduced the interest rates on home loans. The bank has cut the Marginal Cost of Funds Based Lending Rate (MCLR) by up to 0.30%, which will now reduce your EMI. These new rates have come into effect from 7 July 2025.
Effect on new interest rates and EMI
According to the new rates of HDFC Bank, the overnight and one-month MCLR rate has now become 8.60%, which was earlier 8.90%. Similarly, the three-month rate has come down from 8.95% to 8.65%. The new rates for six months, one year and two years have been made 8.75% and for three years 8.80%. That is, now the customers who will take a loan or are already on a floating interest rate on the loan will have to pay a little less EMI every month.
Which customers will benefit?
The direct benefit of this reduction will be given to those whose loan is based on floating rate (temporary interest rate). That is, if your interest rate is linked to MCLR, then your EMI will automatically decrease. At the same time, if MCLR increases in a bank, then EMI also increases. In such a situation, this step of HDFC Bank is a relief news for loan takers, especially for those who are worried about EMI every month.