Rate Reset Alert! Bank of India’s Overnight MCLR ( Marginal Cost of Funds-Based Lending Rate ) Set at 8.15%-Will Your EMIs Drop?

Bank of India has announced a revision in its Marginal Cost of Funds-Based Lending Rate (MCLR) for the overnight tenor, setting the new rate at 8.15% effective May 1, 2025. This adjustment comes as part of the bank’s periodic review of lending rates, which directly impacts the interest rates for various floating-rate loans, including home, auto, and personal loans.

 

The revised overnight MCLR marks a reduction from the previous rate of 8.25%, signaling a marginal easing in short-term borrowing costs for customers. The move is expected to offer some relief to borrowers with loans linked to the overnight MCLR, as their equated monthly installments (EMIs) could see a slight decrease or their loan tenure may shorten.

 

Bank of India’s latest MCLR rates for other tenors remain unchanged, with the one-month MCLR at 8.45%, three-month at 8.60%, six-month at 8.85%, one-year at 9.05%, and three-year at 9.20%. The bank’s decision aligns with broader trends in the banking sector, where several major lenders have been adjusting rates in response to evolving market conditions and the Reserve Bank of India’s monetary policy stance.

 

Customers are advised to check with their branches or the bank’s official website for detailed information on how the revised rates may affect their existing or new loans.

 

Source: Bank of India