MCLR

Private sector lender HDFC Bank has increased the Marginal Cost of funds-based Lending Rate (MCLR) by up to 10 basis points across tenors effective June 8, 2026. The maximum hike of 10 basis points was for loans having a maturity of two years to 8.55 per cent from the earlier 8.45 per cent. The benchmark one-year MCLR has been revised up by 5 basis points to 8.40 per cent, as per the data available on the HDFC Bank website. The one-year rate is used to fix most consumer loans, such as auto, personal and home loans. The overnight, three-month, six-month and three-year tenor MCLRs have been raised by 5 basis points to 8.10 per cent, 8.20 per cent, 8.35 per cent and 8.65 per cent, respectively. The MCLR hike decision comes days after the Reserve Bank on Friday expectedly kept interest rates unchanged for the second time in a row as it weighed the impact of rising energy prices and supply disruptions caused by the West Asia crisis.

SBI's Amrit Vrishti, which offered 6.6 per cent for 444 days, has been revised downward to 6.45 per cent

RBI data shows lending rates on fresh and outstanding loans fell six bps in August, while the one-year median MCLR of banks stayed unchanged at 8.60 per cent in September

HDFC Bank, PNB, BoB, IOB and BOI trim MCLR rates, signalling possible EMI relief for borrowers soon

BoB and IOB have cut MCLR rates for select tenors, offering EMI relief to borrowers, effective mid-September

Home, auto and corporate loans set to reduce as lenders trim minimum interest rate that they are allowed to charge on loans

State-owned Indian Bank on Wednesday said it has reduced Marginal Cost of Funds Based Lending Rate (MCLR) for one year maturity by 5 basis points to 9 per cent. The new rate will be effective from July 3, Indian Bank said in a statement. The one-year MCLR is the benchmark against which most customer loans such as auto, personal and home loans are priced. Reinforcing its commitment to affordable credit, the bank has announced a reduction of 5 basis points in its one-year Marginal Cost of Funds Based Lending Rate (MCLR), bringing it down to 9 per cent, it said. This reduction will directly benefit borrowers with a lower interest rate on loans, it said. Besides, the Chennai-based bank has announced the complete waiver of minimum balance charges across all Savings Bank accounts, effective July 7, 2025. This move is aimed at fostering financial inclusion and making banking more accessible and affordable for all sections of society, it said. This decision is set to benefit a vast spec

The Reserve Bank of India (RBI) may go for a "jumbo rate cut" of 50 basis points on Friday to reinvigorate the credit cycle and counterbalance uncertainties, said SBI research report. RBI's rate-setting panel Monetary Policy Committee (MPC) will start deliberations on the next bi-monthly monetary policy on June 4 and announce the decision on June 6 (Friday). The central bank reduced the key interest rate (repo) by 25 bps each in February and April, bringing it to 6 per cent. The six-member MPC, headed by RBI Governor Sanjay Malhotra, also decided to change the stance from neutral to accommodative in its April policy. "We expect a 50-basis point rate cut in June 25 policy as jumbo rate cut could act as a counterbalance to uncertainty," said the research report from the State Bank of India's Economic Research Department 'Prelude to MPC Meeting - June 4-6, 2025'. It further said a large rate cut could reinvigorate a credit cycle. "Cumulative rate cut over the cycle could be 100 basi

Meanwhile, loans linked to marginal cost of funds based lending rate (MCLR) has reduced to 36 per cent as of December 2024, Reserve Bank of India (RBI) annual report revealed

Banks have reduced their repo-linked external benchmark-based lending rates by 50 bps, the same as the quantum of rate cuts so far

Agarwal points out that rate changes in the external benchmark are transmitted automatically, without being influenced by a bank's internal cost structure

Prudent growth forecast for FY26: 12-13%

MCLR is the minimum interest rate a financial institution needs to charge for a specific loan. It dictates the lower limit of the interest rate for a loan

SBI executives said this revision is part of the process to pass on the increase in cost of funds to borrowers and protect margins

Rupee-denominated fund-raising would be worth Rs 20,000-25,000 crore in FY24, says export finance institution

Experts said, generally, in an easing cycle banks tend to reduce the interest rates on deposits faster than on loans to protect their margins

Interest rates on fresh deposits have moved up faster than fresh loans

Following the RBI MPC's repo rate hike earlier this month, many banks like Bank of Baroda, Bank of India, and Punjab National Bank have also hiked their key lending rates

Marginal cost of funds-based lending rate (MCLR) is the minimum interest rate below which a bank cannot lend, except in certain cases

'NBFCs need to be wary of rising borrowing costs as financial conditions tighten'