EMI will be reduced
After cutting the repo rate by the Reserve Bank of India, now the major banks of the country have announced a cut in MCLR. The major banks of the country like State Bank of India, Bank of Baroda, HDFC Bank and Indian Overseas Bank have announced a cut in Marginal Cost of Fund based lending rates. Let us know which bank has reduced the interest rates of what percentage.
State Bank of India’s lending rates
State Bank of India (SBI), the country’s largest government bank, has reduced some of its lending rates (MCLR) slightly. This change has happened when the Reserve Bank of India (RBI) kept the repo rate in its August meeting. SBI has cut rates up to 5 basis points (BPS). The new rates are applicable since 15 August 2025. Now the MCLR of SBI is between 7.9% to 8.85%, which was earlier 7.95% to 8.9%.
| Time period | Earlier MCLR (%) | Revise MCLR (%) |
|---|---|---|
| Overnight | 7.95 | 7.90 |
| One month | 7.95 | 7.90 |
| 3 months | 8.35 | 8.30 |
| 6 months | 8.70 | 8.65 |
| One year | 8.80 | 8.75 |
| Two years | 8.85 | 8.80 |
| three years | 8.90 | 8.85 |
Landing Rates of Bank of Baroda
Bank of Baroda has amended its MCLR since August 12, 2025. Overnight MCLR has been reduced from 8.10% to 7.95%, while one month MCLR reduced from 8.30% to 7.95%. At the same time, three months MCLR has been reduced from 8.5% to 8.35%, six months MCLR has been reduced from 8.75% to 8.65% and one year MCLR has been reduced from 8.9% to 8.8%.
| Serial number | MCLR Benchmark | Effective MCLR (%) from 12.08.2025 |
|---|---|---|
| 1 | Overnight MCLR | 7.95 |
| 2 | 1 month | 7.95 |
| 3 | 3 months | 8.35 |
| 4 | 6 months | 8.65 |
| 5 | 1 year MCLR | 8.80 |
HDFC Bank interest rates
HDFC Bank, the country’s largest private bank, has also amended MCLR. Now the new interest rates have increased from 8.55% to 8.75%. The new rates are applicable since August 7, 2025. The bank changed the MCLR after the RBI meeting in August.
Punjab National Bank’s Lending Rates
Punjab National Bank has also cut 5 basis points in MCLR. The bank has reduced the overnight MCLR from 8.2 percent to 8.15 percent. At the same time, one month MCLR has come down from 8.35% to 8.3% and three months MCLR has come down from 8.55% to 8.5%. The six -month MCLR has come down from 8.75% to 8.7% one year MCLR has come down from 8.9% to 8.85% and three years MCLR has come down from 9.2% to 9.15%. The new rates are effective since 1 August 2025. But the thing to note is that PNB has cut the lending rates before the RBI meeting in August.