Interest Rate Cut: If you are troubled by the loan EMI, then this news can be very special for you. Let us tell you that both PNB and BOI, the second largest bank in the public sector, have reduced their MCLR, i.e., marginal cost of funds-based lending rates. Overall, both banks have reduced their loan rates. This will reduce the EMI of home loans, personal loans, and auto loans with a floating rate.
Learn how much cut in MCLR
Explain that PNB has reduced 15 BPS in its manual cost from September. Thus, BOI has cut its marginal cost rates by 5 to 15 bps. However, the bank has retained the overnight MCLR as it is. The new interest rates of both banks are applicable since 1 September 2025. This will directly affect those whose loan is related to MCLR. Explain that in the monetary policy of August, through the RBI, the repo rate was kept stable at 5.5 percent.
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PNB has reduced MCLR so much
Let me tell you that earlier the marginal cost was 8.15 fees, which has been reduced to 8 percent. In this, the 1-month marginal cost has been reduced from 8.30 percent to 8.25 percent. The 3-month margin cost has been increased from 8.50 percent to 8.45 percent. The 1-year marginal cost has been 8.85 percent to 8.80 percent. The 3-year MCLR has been increased from 9.15 percent to 9.10 percent. MCLR will directly affect home loan customers.
BOI customers get a gift
Explain that BOI has reduced MCLR to 7.95 percent on almost all tenures. In which 1 month marginal cost has been reduced from 8.40 percent to 8.30 percent. With this, the 3-month margin cost has increased from 8.55 percent to 8.45 percent. The 6-month MCLR has come down from 8.80 percent to 8.70 percent. The 1-year MCLR has increased from 8.90 percent to 8.85 percent. The 3-year MCLR has increased from 9.15 percent to 9 percent.
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Learn what MCLR is
For information, let us know that MCLR banks have a benchmark rate on the basis of which the interest rate is fixed on loans with floating rates like home loans, personal loans, and auto loans. As soon as MCLR is cut, the interest on the loan decreases. This causes customers to reduce their monthly EMI. However, now new loans are mainly connected to EBLR, but customers with old MCLR-based loans get relief from this.