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As of March 2025, several leading Indian banks have revised their Marginal Cost of Funds-based Lending Rates (MCLR), which impacts borrowing costs for individuals and businesses. The Reserve Bank of India (RBI) introduced the MCLR regime in 2016, which was later replaced by the External Benchmark-based Lending Rate (EBLR) regime in 2019. However, many existing borrowers who took loans during the MCLR regime still pay interest based on the MCLR rate.
Canara Bank has reduced its MCLR across select tenures, while HDFC Bank and Bank of Baroda have kept their rates unchanged. IDBI Bank and Punjab National Bank (PNB) have also maintained their MCLR rates. The revised rates will affect borrowers who have loans linked to the MCLR regime.
The MCLR rates for different tenures are:
* Canara Bank: 8.30% (overnight), 8.35% (one-month), 8.90% (six-month), 9.10% (one-year), 9.25% (two-year), and 9.30% (three-year)
* HDFC Bank: 9.20% (one-month), 9.30% (three-month), 9.40% (six-month), 9.40% (one-year), 9.40% (two-year), and 9.45% (three-year)
* Bank of Baroda: 8.15% (overnight), 8.35% (one-month), 8.55% (three-month), 8.80% (six-month), and 9.00% (one-year)
* Bank of India: 8.25% (overnight), 8.45% (one-month), 8.60% (three-month), 8.85% (six-month), 9.05% (one-year), and 9.20% (three-year)
* IDBI Bank: 8.45% (overnight), 8.60% (one-month), 8.90% (three-month), 9.15% (six-month), 9.20% (one-year), 9.75% (two-year), and 10.15% (three-year)
Borrowers who have loans linked to the MCLR regime can check their interest rates and make informed decisions based on the latest rates. The MCLR regime continues to play a crucial role in determining borrowing costs for individuals and businesses in India.