Bank of India Revises 1-Year MCLR to 8.75% Effective January 1

Bank of India, one of the country’s leading public sector banks, has revised its 1-year MCLR to 8.75%, down from 8.85%, effective January 1. The MCLR serves as a benchmark for determining lending rates across various loan products, including housing, personal, and corporate loans.

This reduction, though modest, signals the bank’s effort to align lending rates with prevailing market conditions and enhance affordability for borrowers. It also underscores the institution’s focus on balancing profitability with customer-centric financial solutions.

Key Highlights

• Revised Rate: 1-year MCLR cut to 8.75% from 8.85%.
• Effective Date: January 1, 2026.
• Impact: Lower borrowing costs for retail and corporate customers.
• Benchmark Role: MCLR influences interest rates across loan categories.
• Strategic Focus: Reflects Bank of India’s calibrated approach to rate management.

This adjustment is expected to provide incremental relief to borrowers while reinforcing the bank’s competitive positioning in India’s lending market.

Sources: Bank of India corporate