Lending rates play a crucial role in determining the borrowing costs for both individuals and businesses. As of March 2025, several leading banks, including HDFC Bank, Bank of Baroda, Punjab National Bank (PNB), Canara Bank, and IDBI Bank, have revised their marginal cost of funds-based lending rates (MCLR). HDFC Bank and Canara Bank have lowered lending rates for certain tenures, while others have kept the rates unchanged. Note that new rates will have an impact on borrowers who have loans linked to the MCLR regime.
With interest rates being a key factor in home loans, personal loans, and corporate borrowings, understanding the latest rates can help borrowers make informed financial decisions. Below is an overview of the latest lending rates across major Indian banks.
What is MCLR?
MCLR stands for the marginal cost of funds-based lending rate. It is the minimum interest rate below which banks are not permitted to lend to borrowers. The Reserve Bank of India (RBI) introduced the MCLR regime on April 1, 2016. However, it was later replaced with the external benchmark- based lending rate (EBLR) regime from October 1, 2019, so that lending rates move in sync with policy rates. Although all new floating rate loans are tied to EBLR, many existing borrowers who took their loans during the MCLR regime have yet to transition to the EBLR system and continue to pay interest as per the MCLR regime.
Canara Bank’s lending rates
Canara Bank has reduced the marginal cost of funds-based lending rate (MCLR) across select tenures. The bank has reduced overnight MCLR by 5 basis points (bps), bringing it down from 8.35% to 8.30%. The one-month, three-month, six-month, and one-year MCLR rates have remained unchanged at 8.35%, 8.55%, 8.90%, and 9.10%, respectively. The two-year MCLR has been reduced from 9.35% to 9.25%, reflecting a 10-basis point cut, while the three-year MCLR has seen a 15-basis point decline- from 9.45% to 9.30%.
| TENOR OF MCLR | MCLR |
| Overnight MCLR | 8.30% |
| One Month MCLR | 8.35% |
| Three Month MCLR | 8.55% |
| Six Month MCLR | 8.90% |
| One-year MCLR | 9.10% |
| Two-year MCLR | 9.25% |
| Three-year MCLR | 9.30% |
Latest HDFC Bank lending rates
The bank has maintained the one-month MCLR at 9.20% and the three-month MCLR unchanged at 9.30%; it also kept the six-month and one-year MCLRs unchanged at 9.40%. However, it reduced the two-year MCLR to 9.40% from 9.45% earlier. The three-year MCLR is unchanged at 9.45%. The rates are effective from March 7, 2025.
HDFC Bank cuts lending rate by 5 bps on this tenure; check details
| Tenor | MCLR |
| Overnight | 9.20% |
| 1 Month | 9.20% |
| 3 Month | 9.30% |
| 6 Month | 9.40% |
| 1 Year | 9.40% |
| 2 Year | 9.40% |
| 3 Year | 9.45% |
Bank of Baroda: Check the latest lending rates
Bank of Baroda MCLR in March remains unchanged from the previous month’s rates. The overnight MCLR is 8.15%; the one-month MCLR is 8.35%; the three-month MCLR is 8.55%; the six-month MCLR is 8.80%; and the one-year MCLR is 9%. The rates are effective from March 12, 2025.
| Sr. No. | MCLR Benchmark | MCLR in (%) |
| 1 | Overnight MCLR | 8.15 |
| 2 | 1 Month MCLR | 8.35 |
| 3 | 3 Month MCLR | 8.55 |
| 4 | 6 Month MCLR | 8.8 |
| 5 | 1 Year MCLR | 9 |
Also read: After RBI rate cut, check latest home loan interest rates of top banks for loans above Rs 75 lakh
Bank of India’s lending rates
The bank has kept the MCLR unchanged. According to the Bank of India’s website, the latest MCLR for overnight tenure is 8.25%. For a one-month tenure, the MCLR is at 8.45%. The three-month MCLR rate for Bank of India’s customers is 8.60%; the six-month MCLR is 8.85%; the one-year MCLR is 9.05%; and the three-year MCLR is 9.20%. These rates are effective from March 1, 2025, onwards.
| Sl.No | Tenor wise MCLR | Rate effective from 01.03.2025 |
| 1 | Overnight MCLR | 8.25% |
| 2 | 1 Month MCLR | 8.45% |
| 3 | 3 Month MCLR | 8.60% |
| 4 | 6 Month MCLR | 8.85% |
| 5 | 1 Year MCLR | 9.05% |
| 6 | 3 Year MCLR | 9.20% |
IDBI Bank loan rates update: Check the latest lending rates
The bank has kept the MCLR unchanged. According to the IDBI Bank’s website, the latest MCLR for overnight tenure is 8.45%. For a one-month tenure, the MCLR is 8.60%. The three-month MCLR rate for IDBI Bank customers is 8.90%. The six-month MCLR is 9.15%. The one-year MCLR is 9.20%. The two-year MCLR is 9.75%. The three-year MCLR is at 10.15%. These rates are effective from March 12, 2025, onwards.
| Overnight MCLR | 8.45% |
| One Month MCLR (1M) | 8.60% |
| Three Month MCLR (Q) | 8.90% |
| Six Month MCLR (HY) | 9.15% |
| One year MCLR (Y) | 9.20% |
| Two Year MCLR (2Y) | 9.75% |
| Three Year MCLR (3Y) | 10.15% |
