Good news for borrowers! These banks lower their lending rates; check new rates
Punjab National Bank (PNB) and Bank of India (BOI) reduced the marginal costs of funding -based lending rates (MCLR) and provided some relief to the debtors who received loans under the MCLR.
PNB has reduced BOI lending rates.
Punjab National Bank (PNB) and Bank of India (BOI) brought marginal costs The fund -based lending rates (MCLR) fell and brought some relief to borrowers who received credit under MCLR. PNB reduced its MCLR by 15 basis points, and Boi reduced its rates by 5 to 15 basis during all over its mission periods that prevented the task of office. These revised rates from the lenders will enter into force as of September 1, 2025.
The new rates arrived even after 5.5% replaced the repo ratio at the 6 August 2025 Monetary Policy (MPC) meeting of the Indian Reserve Bank (RBI).
What is MCLR?
The marginal cost of MCLR or fund -based lending rate is a standard ratio for banks to decide on interest rates on various variable -rate loans such as home, personal and automobiles. If the MCLR ratio decreases, the loans on EMIs also mean that a debtor reduces the amount of credit repayment. However, new variable -rate loans are not valid for new loans since they are associated with external criterion lending rate (EBLR).
How much did PNB reduce lending rates?
The PNB reduced its MCLR 15 basis points (BPS) during their term of office.
Night ratio- These were reduced from 8.15% to 8%.
One month MCLR- This was reduced from 8.30% to 8.25%.
Three-month ratio- this decreased from 8.50% to 8.45%.
The six -month ratio fell from 8.70% to 8.65% and one year from 8.85% to 8.80%. Three -year MCLR was reduced from 9.15% to 9.10%.
What changes did the Indian Bank make in the lending rates?
The Indian Bank also reduced its MCLR rates by 5 to 15 basis points during all their term of office, which prevented one nightgown unchanged by 7.95%. Rates are as follows:
One -month MCLR rates increased from 8.40% to 8.30%, while three months decreased from 8.55% to 8.45%. The six -month ratio fell from 8.80% to 8.70% one year.
