Home Loan Interest Rates:If you’re planning to take a home loan, personal loan, or auto loan, it’s important to compare interest rates to find the cheapest option.
In April 2025, several major banks updated their MCLR (Marginal Cost of Lending Rate), which directly affects your loan’s EMI.
Let’s take a look at which bank is offering the lowest interest rate and where you can get the most benefit.
What is MCLR?
MCLR is the lowest interest rate at which banks lend money. If a bank lowers its MCLR, borrowers benefit either through reduced EMIs or quicker loan repayment.
Which Bank Has the Lowest Interest Rate?
Bank of Baroda (BOB)
1-Year MCLR: 9%
Other Rates: 8.15% (Overnight), 8.35% (1 Month), 8.55% (3 Months), 8.80% (6 Months)
HDFC Bank
HDFC lowered its rates in April.
1-Year MCLR: 9.30% (earlier 9.40%)
Rates for other periods range from 9.10% to 9.35%
Canara Bank
Rates remain the same.
1-Year MCLR: 9.10%
Other Rates: 8.30% (Overnight), 8.90% (6 Months), 9.30% (3 Years)
Bank of India (BOI)
No rate changes.
1-Year MCLR: 9.05%
Other Rates: Between 8.25% and 9.20%
State Bank of India (SBI)
Rates are unchanged.
1-Year MCLR: 9%
Other Rates: 8.20% (Overnight), 8.55% (3 Months), 8.90% (6 Months)
Which Bank Is Offering the Cheapest Loan?
For loans of one year or more, SBI and Bank of Baroda offer the lowest interest rates, with a 1-year MCLR of 9%.
For very short-term loans of 1 to 3 months, SBI and BOI have the most affordable rates.
