Rate Reset: Kotak Mahindra Bank Revises One-Year MCLR to 8.40%

The MCLR serves as the benchmark for most retail and corporate loans, including home loans, and directly impacts borrowing costs for customers.

Kotak’s MCLR across tenors currently ranges between 8.10% and 9.30%. The one-year rate is particularly significant as it is the most commonly used benchmark for loan pricing. Analysts note that the revision aligns with broader trends in the banking sector, where lenders are adjusting lending rates in response to RBI’s liquidity management and market conditions.  

Notable updates  
• Kotak Mahindra Bank revises one-year MCLR to 8.40% effective December 16, 2025  
• MCLR across tenors ranges from 8.10% to 9.30%, per latest disclosures  
• One-year MCLR is the key benchmark for home loans and corporate borrowings  
• Revision reflects changes in funding costs and liquidity conditions  
• Aligns with sector-wide adjustments following RBI’s liquidity measures  

Major takeaway  
Kotak Mahindra Bank’s revision of its one-year MCLR to 8.40% signals rising borrowing costs, impacting retail and corporate loan customers while reflecting evolving liquidity dynamics.  

Sources: MyMoneyMantra, CodeForBanks, BankBazaar