MCLR: Three major public sector banks of the country have given relief to customers. All three public sector banks have reduced MCLR. At the beginning of July, the public sector Punjab National Bank (PNB), Indian Bank and Bank of India have cut 5 basis points (BPS) in their marginal cost of fund-based lending rate (MCLR). The 5 basis point means the rate by 0.05 per cent has been reduced. This deduction has been made at a time when the Reserve Bank of India (RBI) has reduced the repo rate in a total of 100 basis points i.e. 1% since February 2025. This will make the common people lower interest rates on loans and will provide relief in EMI.
What is MCLR?
MCLR is the minimum interest rate on which banks can give loans. This rate fixes the minimum limit of any loan. Until there is no separate instructions from the RBI, banks cannot take a lower interest rate. Now the three major public sector banks of the country have reduced MCLR.
PNB reduced interest rates
The country’s second largest public sector bank PNB has cut MCLR rates by 5 BPS for all periods.
Overnight mclr: 8.25% to 8.20%
One month: It has been reduced from 8.40% to 8.35%.
three months: From 8.60% to 8.55%.
Six months: 8.80% to 8.75%.
One year (Which is for home loan.): 8.95% to 8.90% percent.
three years: The rate of 9.25% to 9.20% has rate.
Indian Bank’s new rates
Indian Bank has also cut interest rates by 5 BPS for some periods, which will be applicable from July 3.
Overnight MCLR: 8.20% does not change this rate.
One month: 8.45% to 8.40%.
three months: From 8.65% to 8.60%.
Six months: From 8.90% to 8.85%.
One year: 9.05% to 9.00%.
Bank of India rates also cut
Bank of India has cut MCLR rates by 5 BPS for all periods from 1 July 2025.
Overnight: 8.15% to 8.10%
One month: 8.45% to 8.40%
three months: 8.60% to 8.55%
Six months: 8.85% to 8.80%
One year: 9.05% to 9.00%
three years: 9.20% to 9.15%
Customers will get relief
After these deductions in MCLR, the EMI of those taking loans may be reduced to some extent. Especially those customers whose loans are connected to MCLR. This step of banks after the RBI’s repo rate reduction can be a big relief for customers.
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