HDFC Hikes MCLR 10bps: Does Your EMI Rise Now?

HDFC Bank raised its MCLR by up to 10 basis points from June 8. If your home, car, or personal loan is linked to MCLR — not repo rate — your EMI may go up at your next reset date.

Here's what happened: HDFC Bank increased its Marginal Cost of Funds based Lending Rate (MCLR) by up to 10 basis points effective June 8, 2025.. MCLR-linked loans — including older home loans, vehicle loans, and personal loans — reset periodically and will reflect the higher rate at the next reset cycle.. This move signals that banks are recalibrating lending rates even as the RBI has been on a rate-cut path, affecting millions of existing borrowers..

What you should do: Check your loan sanction letter or call your HDFC branch to confirm whether your loan is MCLR-linked or repo-rate-linked — your EMI impact depends entirely on this.. Note your reset date: MCLR loans reset every 6 or 12 months, so calculate exactly when your EMI will change and budget accordingly starting now.. Compare switching to a repo-rate-linked loan — ask HDFC about conversion charges, as repo-linked loans currently sit lower and benefit faster when RBI cuts rates..

Repo-linked loans (RLLR) pass on RBI rate cuts faster than MCLR loans. If the RBI cuts again in 2025, staying on MCLR means you'll wait months longer to see savings.