Home Loan: Canara Bank, Bank of Baroda (BOB), and Punjab National Bank (PNB) have brought good news for their customers.
These major public sector banks have lowered their MCLR (Marginal Cost of Funds-based Lending Rate).
This could lead to lower interest rates on floating-rate loans such as home loans, personal loans, and auto loans.
As a result, customers might see a drop in their EMIs or be able to repay their loans faster.
What is MCLR?
MCLR is the minimum interest rate at which banks offer loans. It is based on the cost banks incur to raise funds (like the interest they pay on deposits).
When banks reduce MCLR, loan borrowers get direct benefits in the form of lower interest rates.
Bank of Baroda – New Rates (Effective from 12th May 2025)
BOB has reduced its 1-year MCLR from 9.00% to 8.95%.
Updated MCLR Rates for Bank of Baroda:
Overnight MCLR: 8.15%
1 Month MCLR: 8.35%
3 Month MCLR: 8.55%
6 Month MCLR: 8.80%
1 Year MCLR: 8.95% (earlier 9.00%)
Base Rate: 9.45% per annum
BPLR: 13.75% per annum
Canara Bank – New Rates (Effective from 12th May 2025)
Canara Bank has reduced MCLR by 5 to 10 basis points across all tenures.
Updated MCLR Rates for Canara Bank:
Overnight: 8.20% (earlier 8.30%)
1 Month: 8.25% (earlier 8.35%)
3 Months: 8.45% (earlier 8.55%)
6 Months: 8.80% (earlier 8.90%)
1 Year: 9.00% (earlier 9.10%)
2 Years: 9.15% (earlier 9.25%)
3 Years: 9.20% (earlier 9.30%)
Punjab National Bank – New Rates (Effective from 1st May 2025)
PNB has also reduced its MCLR across key tenures.
Updated MCLR Rates for Punjab National Bank:
Overnight: 8.25% (earlier 8.40%)
1 Month: 8.40% (earlier 8.50%)
3 Months: 8.60% (earlier 8.70%)
6 Months: 8.80% (earlier 8.90%)
1 Year: 8.95% (earlier 9.05%)
3 Years: 9.25% (earlier 9.35%)
How Does This Help You?
Customers with floating-rate loans from these banks may see a reduction in their EMIs. Home loan and auto loan borrowers, in particular, are likely to benefit.
This move is a positive sign that interest rates may remain stable and that borrowing costs could decrease.
