Indian Bank: If you have availed any type of loan from Indian Bank, customers are in for a financial shock. Indian Bank has taken a major decision regarding loan interest rates. The bank has announced an increase in certain key benchmark rates linked to its lending rates.
The new rates will come into effect starting June 3, 2026. Consequently, for customers whose loans are linked to the MCLR or TBLR, their Equated Monthly Instalments (EMIs) may increase, or the loan repayment tenure may be extended. However, the bank has currently kept certain key rates unchanged.
The bank has decided to hike several key lending rates. This decision was taken following a review by the bank’s Asset-Liability Management Committee.
Know the Extent of the MCLR Hike
Indian Bank has raised the 3-month MCLR rate from 8.40% to 8.50%. Meanwhile, the 6-month MCLR has increased from 8.65% to 8.75%, and the 1-year MCLR has risen from 8.75% to 8.85%. However, the overnight MCLR remains unchanged at 7.90%, and the 1-month MCLR has been retained at 8.20% without any alteration.
TBLR Rates to See an Increase as Well
The bank has also hiked its TBLR rates. For tenures of up to 3 months, this rate has increased from 5.25% to 5.35%. For the 3-to-6-month tenure, the rate has been raised from 5.45% to 5.55%. Similarly, for tenures ranging from 6 months to 1 year, and from 1 year to 3 years, the TBLR has been increased from 5.60% to 5.75%. Rates That Will Remain Unchanged
The bank has maintained the Base Rate at 9.55%, the Benchmark Prime Lending Rate (BPLR) at 13.80%, the Policy Repo Rate at 5.25%, and the Repo-Linked Benchmark Lending Rate (RBLR) at 7.95%, keeping them unchanged at their previous levels.
The increase in the MCLR and TBLR may make certain loans linked to these rates more expensive. Customers whose loans are pegged to these benchmark rates may also witness an increase in their EMIs.
