 "Lending rates ease 6 bps in August; 1-year MCLR steady in September")
Don't want to miss the best from Business Standard?
Reflecting ongoing monetary transmission, bank lending rates on fresh as well as outstanding loans declined by six basis points in August 2025 over July 2025, according to Reserve Bank of India (RBI) data.
The RBI said the weighted average lending rate (WALR) on fresh rupee loans of Scheduled Commercial Banks (SCBs) stood at 8.75 per cent in August 2025, against 8.81 per cent in July 2025. The WALR on outstanding rupee loans of SCBs declined to 9.32 per cent in August 2025 from 9.38 per cent in July 2025.
The one-year median Marginal Cost of Funds-based Lending Rate (MCLR) of SCBs remained unchanged at 8.60 per cent in September 2025.
The share of External Benchmark-based Lending Rate (EBLR) linked loans in total outstanding floating rate rupee loans of SCBs was 62.9 per cent at end-June 2025, up from 61.6 per cent in March 2025. The share of MCLR-linked loans was 33.8 per cent, compared with 34.9 per cent at end-March 2025.
Since February 2025, the RBI has cut the policy repo rate by 100 basis points to 5.5 per cent, alongside steps to improve liquidity in the system.
Meanwhile, the weighted average domestic term deposit rate (WADTDR) on fresh rupee term deposits moderated to 5.56 per cent in August 2025 from 5.61 per cent in July 2025.
The WADTDR on outstanding rupee term deposits of SCBs was 6.87 per cent in August 2025, compared with 6.92 per cent in July 2025, the RBI added.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%