Karur Vysya Bank loan rates are set to increase from September 22, 2026, making borrowing more expensive for customers whose loans are linked to the bank’s MCLR, Base Rate or BPLR.
Existing borrowers may also see higher EMIs after their next applicable rate reset.
The bank has increased its Marginal Cost of Funds Based Lending Rate by 5 basis points across all listed tenors. The Base Rate and Benchmark Prime Lending Rate have also been raised by 20 basis points.
Karur Vysya Bank Loan Rates Increase
The overnight MCLR has increased from 9.00% to 9.05%, while the one-month MCLR has also moved from 9.00% to 9.05%.
The three-month MCLR has been raised from 9.15% to 9.20%. The six-month MCLR has increased from 9.30% to 9.35%, while the one-year MCLR has moved from 9.40% to 9.45%.
The bank’s BPLR has also increased from 16.00% to 16.20%. These revised rates will come into effect from September 22, 2026.
Existing Borrowers May Face Higher EMIs
The rate increase will directly affect borrowers whose loan interest rates are linked to the MCLR, Base Rate or BPLR. However, the exact impact on an individual customer’s EMI will depend on the terms of the loan and the applicable reset date.
When the revised rate is applied at the next reset, borrowers could see an increase in their EMI or a change in the remaining repayment period, depending on the loan agreement and repayment structure.
New Loans Could Become More Expensive
Customers planning to take a home loan, vehicle loan or personal loan linked to the affected benchmarks may also face higher borrowing costs after the revised rates take effect.
Borrowers should check the applicable interest rate, reset frequency and other terms with the bank before taking a new loan. Existing customers can also review their loan statements to understand when the revised rate will be applied.
Revised Rates Effective September 22
The revised MCLR rates range from 9.05% for overnight and one-month tenors to 9.45% for the one-year tenor. The three-month and six-month rates now stand at 9.20% and 9.35%, respectively.
The BPLR has moved to 16.20%. Customers whose loans are linked to these benchmarks should check their individual loan terms to determine how the change will affect their repayments.
