Home Loan: Canara Bank, BOB and PNB have given good news to customers. Large public sector banks like Bank of Baroda, Punjab National Bank (PNB) and Canara Bank have cut their MCLR i.e. marginal cost of funds-based lending rates. This can reduce interest rates on floating-per loan such as home loan, personal loan and auto loans, which can reduce people’s EMI or eliminate the loan quickly.
What is MCLR?
MCLR is the minimum interest rate on which banks give loans. This interest rate is fixed on the basis of bank funding expenses (eg deposits on deposits). When banks reduce MCLR, it is directly benefited by the loan takers.
New rates of Bank of Baroda (applicable from 12 May 2025)
Bank of Baroda has reduced the 1 -year MCLR rate from 9.00% to 8.95%.
MCLR Rates of Bank of Barodi
Overnight MCLR: 8.15%
1 month MCLR: 8.35%
3 months MCLR: 8.55%
6 months MCLR: 8.80%
1 year MCLR: 8.95% (first 9.00%)
Base Rate: 9.45% annually
BPLR: 13.75% annually
Canara Bank’s new rates (applicable from 12 May 2025)
Canara Bank has cut 5 to 10 basis points in all periods rates.
Canara Bank’s MCLR Rates
Overnite: 8.20% (first 8.30%)
1 month: 8.25% (first 8.35%)
3 months: 8.45% (first 8.55%)
6 months: 8.80% (first 8.90%)
1 year: 9.00% (first 9.10%)
2 years: 9.15% (first 9.25%)
3 years: 9.20% (first 9.30%)
New rates of Punjab National Bank (applicable from 1 May 2025)
PNB has also reduced MCLR rates on all major periods.
Punjab National Bank’s MCLR Rates
Overnight: 8.25% (first 8.40%)
1 month: 8.40% (first 8.50%)
3 months: 8.60% (first 8.70%)
6 months: 8.80% (first 8.90%)
1 year: 8.95% (first 9.05%)
3 years: 9.25% (first 9.35%)
What will be the benefit?
Those who have taken floating rate loans from these banks can get relief in EMI. Especially home loans and auto loans will benefit from this change. This step gives a positive indication towards stable of interest rates and reducing the cost of loan.
PNB Housing Finance launched fixed rate non-home loan, interest will start from 10%