News India Live, Digital Desk: Before Holi, HDFC Bank has given a big gift to crores of its customers. The largest private sector lender has announced a cut in its benchmark lending rates (MCLR). After this cut, the bank’s revised rates have now come in the range of 8.15% to 8.55%, which earlier ranged from 8.25% to 8.60%. Revised MCLR Rates (Tenure-wise New Rates) The bank has reduced the rates for different tenures as follows: Overnight and for one month: With a cut of 10 basis points, it is now 8.15%. (previously 8.25%) It is 8.55%. What will be the impact on your EMI? (Impact on Borrowers)Most retail loans (like home and car loans) are linked to one-year MCLR. New Borrowers: New borrowers will get the benefit of lower interest rates immediately. Existing customers: Customers whose loans are linked to MCLR will get the benefit of this reduction on their ‘reset date’. For example, if the reset of your loan is in March, your next EMI will be reduced. Changes in FD rates too (Fixed Deposit Updates) Along with reducing the lending rates, the bank has also revised select fixed deposit (FD) rates: 3 years to 4 years 7 months FD: For general citizens, the interest rate has been increased from 6.40% to 6.50%. Senior Citizens: For senior citizens, the interest on the same period has been increased. The rate has been increased from 6.90% to 7%. Why was this decision taken? This reduction is believed to be the result of the flexibility given to banks by the Reserve Bank of India (RBI) between controlling inflation and managing liquidity. Rate reduction by HDFC Bank may inspire other competing banks to reduce their rates as well.