India’s largest private sector lender, HDFC Bank, has announced an increase in its Marginal Cost of funds-based Lending Rate (MCLR) by up to 10 basis points across various tenors. According to official data updated on the bank’s website, the revised lending rates took effect on June 8, 2026. This upward revision means that consumer loans linked to the MCLR, including auto, personal, and home loans, are set to become more expensive for existing and new borrowers.
The sharpest increase of 10 basis points was applied to loans with a two-year maturity period, pushing the rate up to 8.55 percent from the previous 8.45 percent. Meanwhile, the benchmark one-year MCLR—which anchors the majority of retail consumer credit—was raised by 5 basis points to stand at 8.40 percent. Furthermore, the bank implemented a uniform 5-basis-point hike across other key tenors, moving overnight rates to 8.10 percent, three-month rates to 8.20 percent, six-month rates to 8.35 percent, and three-year rates to 8.65 percent.
HDFC Bank’s decision to hike retail lending rates comes just days after the Reserve Bank of India (RBI) chose to hold its benchmark policy repo rate unchanged for the second consecutive monetary policy review. The central bank’s cautious pause was driven by global macroeconomic headwinds, primarily rising international energy prices and ongoing supply chain disruptions stemming from the prolonged geopolitical crisis in West Asia. Despite the RBI keeping interest rates steady, internal cost pressures have prompted the private banking giant to adjust its lending margins, signaling a tighter credit environment ahead for consumers.
