Bank MCLR Rate September 2025: After months of rising loan rates, customers have finally received some relief.
In September 2025, six major banks have reduced their Marginal Cost of Funds Based Lending Rate (MCLR).
These include HDFC Bank, Punjab National Bank (PNB), Bank of Baroda, Bank of India, Indian Overseas Bank, and Central Bank of India.
The cuts will directly impact home loan, personal loan, and auto loan EMIs, bringing slight relief to borrowers.
1/7 – HDFC Bank
HDFC Bank has cut its six-month and one-year MCLR by 5 basis points (bps), reducing them from 8.70% to 8.65%.
The two-year MCLR has also been lowered from 8.75% to 8.70%. However, the three-year MCLR remains at 8.75%.
The overnight and one-month MCLR stay at 8.55%, and the three-month MCLR at 8.60%.
2/7 – Bank of Baroda
Effective September 12, 2025, Bank of Baroda has reduced its overnight MCLR by 10 bps, from 7.95% to 7.85%, and its three-month MCLR by 15 bps, from 8.35% to 8.20%.
No change has been made to the one-month (7.95%), six-month (8.65%), and one-year (8.80%) MCLR.
3/7 – Indian Overseas Bank
Effective September 15, 2025, Indian Overseas Bank has reduced its overnight MCLR by 5 bps, from 8.05% to 8.00%.
It has also cut the one-year, two-year, and three-year MCLR by 5 bps, now at 8.85%, 8.85%, and 8.90% respectively.
No changes were made to the one-month (8.30%), three-month (8.45%), and six-month (8.70%) MCLR.
4/7 – Punjab National Bank (PNB)
Effective September 1, 2025, PNB has reduced its overnight MCLR from 8.15% to 8.00%. Other reductions include:
One-month MCLR: 8.30% → 8.25%
Three-month MCLR: 8.50% → 8.45%
Six-month MCLR: 8.70% → 8.65%
One-year MCLR: 8.85% → 8.80%
Three-year MCLR: 9.15% → 9.10%
5/7 – Bank of India
From early September, Bank of India cut major MCLR rates by 5–15 bps. The overnight MCLR remains unchanged at 7.95%. Other changes:
One-month MCLR: 8.40% → 8.30%
Three-month MCLR: 8.55% → 8.45%
Six-month MCLR: 8.80% → 8.70%
One-year MCLR: 8.90% → 8.85%
Three-year MCLR: 9.15% → 9.00%
6/7 – Central Bank of India
Effective September 10, 2025, Central Bank of India reduced rates across categories:
Overnight MCLR: 8.05% → 8.00%
One-month MCLR: 8.10% → 8.05%
Three-month MCLR: 8.45% → 8.40%
Six-month MCLR: 8.65% → 8.60%
One-year MCLR: 8.80% → 8.75%
7/7 – Direct Benefit to Customers
This round of MCLR cuts will bring direct relief to loan borrowers. Though the reduction in rates is small, it will lower EMIs for home, personal, and auto loans.
Customers with long-term loans, especially housing loans, will feel the benefit more significantly over time.
