look news india
News India Live, Digital Desk: If you are a customer of HDFC Bank and have taken a home loan, then there is a good news for you. HDFC, the country’s largest private bank, has cut its interest rates, which may lighten your monthly installment (EMI) burden. This decision has come at a time when the festive season is going on and people often plan to buy houses.
How much did the interest rates decrease?
HDFC Bank has reduced its Marginal Cost of Funds Based Lending Rates (MCLR) by 0.10% (10 basis points). These new rates have come into effect from November 7, 2025. The bank’s one-year MCLR, to which most home loans are linked, has now come down by 0.05% to 8.50%.
What effect will this have on your pocket?
People whose home loan is linked to MCLR will get the benefit of this deduction. If you understand in simple language, now the cost incurred by the bank for giving loan has reduced a bit, the benefit of which it is passing on to the customers.
However, its effect will not be visible immediately on your EMI. Every loan has a “reset date,” which is usually one year. When the reset date of your loan comes, the bank will update your interest rate as per the new MCLR and after that your EMI will reduce.
For example, if you took the loan in December last year, your EMI will start reducing from December this year.
It is important to note that this cut will not have any direct impact on customers whose home loan is linked to an external benchmark like the repo rate.
What are the home loan rates now?
Even after this deduction, home loan interest rates for employed and business customers in HDFC Bank range between 7.90% to 13.20%. The rate at which you will get the loan depends on your credit score, loan amount and whether you are employed or a businessman.
This step of the bank could be an attempt to increase competition in the market and attract more and more customers during the festive season.
