Home Loan: Canara Bank, BOB and PNB have given good news to the customers. Big government banks like Bank of Baroda, Punjab National Bank (PNB) and Canara Bank have reduced their MCLR i.e. Marginal Cost of Funds-based Lending Rate
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Home Loan: Canara Bank, BOB and PNB have given good news to the customers. Big government banks like Bank of Baroda, Punjab National Bank (PNB) and Canara Bank have cut their MCLR i.e. Marginal Cost of Funds-Based Lending Rate. This can reduce interest rates on floating-rate loans like home loans, personal loans and auto loans, which can reduce people’s EMI or end the loan quickly.
What is MCLR?
MCLR is the minimum interest rate at which banks give loans. This interest rate is decided on the basis of the bank’s funding cost (such as interest paid on deposits). When banks reduce MCLR, the loan takers get direct benefit from it.
Bank of Baroda’s new rates (effective from 12 May 2025)
Bank of Baroda has reduced the 1-year MCLR rate from 9.00% to 8.95%.
Bank of Baroda’s MCLR rates
Overnight MCLR: 8.15%
1 month MCLR: 8.35%
3 month MCLR: 8.55%
6 month MCLR: 8.80%
1 year MCLR: 8.95% (earlier 9.00%)
Base rate: 9.45% per annum
BPLR: 13.75% per annum
Canara Bank’s new rates (effective from 12 May 2025)
Canara Bank has reduced the rates by 5 to 10 basis points for all periods.
Canara Bank MCLR Rates
Overnight: 8.20% (Earlier 8.30%)
1 Month: 8.25% (Earlier 8.35%)
3 Months: 8.45% (Earlier 8.55%)
6 Months: 8.80% (Earlier 8.90%)
1 Year: 9.00% (Earlier 9.10%)
2 Years: 9.15% (Earlier 9.25%)
3 Years: 9.20% (Earlier 9.30%)
Punjab National Bank’s new rates (effective from 1 May 2025)
PNB has also reduced MCLR rates on all major periods.
Punjab National Bank’s MCLR rates
Overnight: 8.25% (earlier 8.40%)
1 month: 8.40% (earlier 8.50%)
3 months: 8.60% (earlier 8.70%)
6 months: 8.80% (earlier 8.90%)
1 year: 8.95% (earlier 9.05%)
3 years: 9.25% (earlier 9.35%)
What will be the benefit?
People who have taken floating rate loans from these banks can get relief in EMI. Especially home loan and auto loan borrowers will benefit from this change. This step gives a positive signal towards keeping interest rates stable and reducing the cost of loan.
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