MCLR revised downward across all tenors, effective 22nd October 2026
The Bank has informed exchanges that its MCLR will be revised with effect from 22nd October 2026.
By ScoutQuest · · 1 min read
- MCLR Effective Date
- 22nd October 2026
- One-year MCLR
- 9.45% → 9.25%
- Overnight & one-month MCLR
- 9.05% → 8.85%
What the bank has informed
The Bank has intimated the exchanges, under Regulation 30, that its Marginal Cost of Funds Based Lending Rates (MCLR) would be revised with effect from 22nd October 2026.
MCLR is a bank's internal benchmark lending rate. Many loans, particularly floating-rate loans, are priced as a spread over the MCLR of a chosen tenor.
The revised rates (existing to revised)
- Overnight MCLR: 9.05% to 8.85%
- One-month MCLR: 9.05% to 8.85%
- Three-month MCLR: 9.20% to 9.00%
- Six-month MCLR: 9.35% to 9.15%
- One-year MCLR: 9.45% to 9.25%
Every tenor in the table has been lowered by 0.20 percentage points, or 20 basis points.
What this means for borrowers
- For a fresh loan priced off MCLR, the benchmark used to set the rate is now lower for the tenor chosen.
- For an existing MCLR-linked floating-rate loan, the applicable rate is typically reset on the reset date written into that loan agreement.
- The one-year MCLR, often used as the reference for many retail and business loans, moves from 9.45% to 9.25%.
What this means for the bank
The update reports only the change in the MCLR, which is the benchmark on the lending side. The actual interest a borrower pays depends on the spread over MCLR and the terms of the individual loan contract.
Point to note
The revised rates apply with effect from 22nd October 2026, and the table covers five tenors, from overnight to one year.
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More numbers
- Overnight MCLR - existing9.05 %
- Overnight MCLR - revised8.85 %
- One-month MCLR - revised8.85 %
- Three-month MCLR - revised9.00 %
- Six-month MCLR - revised9.15 %
- One-year MCLR - existing9.45 %
- One-year MCLR - revised9.25 %
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