Indian Bank has decided to keep its one-year MCLR steady at 8.85%, effective October 3, 2025. The bank’s rate stability aims to provide predictable borrowing costs to customers while navigating market conditions marked by cautious monetary policy and moderate inflation.
                                        
                        
	Indian Bank, a prominent public sector lender, maintained its one-year Marginal Cost of Funds-based Lending Rate (MCLR) at 8.85% as per the review conducted by its Asset Liability Management Committee (ALCO). This benchmark lending rate is crucial as it influences interest rates on various loans including home and business loans for millions of borrowers.
	 
	The decision reflects a steady monetary policy stance amidst a calibrated approach towards inflation and growth. Indian Bank’s other tenors of MCLR and linked lending rates saw minimal or no changes, sustaining consistency for borrowers and investors alike.
	 
	The bank’s stable MCLR is expected to support loan demand by providing clarity and confidence to borrowers concerned about borrowing costs. This also points to the bank’s cautious optimism about the economic outlook while ensuring liquidity remains adequate and credit growth sustainable.
	 
	Indian Bank continues to monitor market developments and policy shifts closely, ready to adjust rates in line with economic indicators and RBI guidelines.
	 
	Key Highlights
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		Indian Bank retains one-year MCLR at 8.85% (effective Oct 3, 2025).
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		Rate stability supports predictable borrowing costs amid economic uncertainty.
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		Minimal or no change in other MCLR tenors and lending rates.
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		Steady MCLR aids loan demand and borrower confidence.
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		Reflects cautious monetary policy stance balancing inflation and growth.
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		Bank closely monitors economic trends and RBI directives.
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		Ensures sustained liquidity and credit growth support.
	Sources: Indian Bank website, ICICI Direct, ScanX, Reuters