Summary of this article
SBI reduces key MCLR rates by five basis points.
Bank of Baroda slashes short-term MCLR up to 35 bps.
Indian Overseas Bank cuts all lending rates by 10 bps.
State Bank of India has reduced its Marginal Cost of Funds-based Lending (MCLR) rate by five basis points across several loan categories with effect from 15 August 2025. After the revision, the overnight MCLR and one-month MCLR stand at 7.90 per cent, compared to 7.95 per cent earlier. The three-month MCLR remains unchanged at 8.05 per cent.
The six-month MCLR continues at 8.45 per cent. The one-year MCLR, which is a key benchmark for retail loans, has been reduced to 8.75 per cent from 8.80 per cent. The two-year MCLR has been fixed at 8.80 per cent, lower than 8.85 per cent previously. The three-year MCLR has been brought down to 8.85 per cent from the earlier 8.90 per cent.
Bank Of Baroda Cuts Rates Across Tenures
Bank of Baroda has also revised its lending rates, effective 12 August 2025. The bank reduced its one-month MCLR by 35 basis points to 7.95 per cent from 8.30 per cent. The overnight MCLR now stands at 8.05 per cent, lower than 8.20 per cent earlier.
The three-month MCLR has been reduced by 15 basis points, moving from 8.45 per cent to 8.30 per cent. For longer tenure loans, the six-month MCLR has been lowered to 8.65 per cent from the earlier 8.75 per cent. The one-year MCLR has been fixed at 8.80 per cent, reduced from 8.90 per cent.
Indian Overseas Bank Revises Lending Benchmarks
Indian Overseas Bank, on the other hand, announced a 10-basis point reduction across all loan tenures in mid-August 2025. Following the change, the overnight MCLR is 8.20 per cent, down from 8.30 per cent. The one-month MCLR has been revised to 8.30 per cent from 8.40 per cent.
The three-month MCLR now stands at 8.45 per cent compared to 8.55 per cent earlier. The six-month MCLR has been reduced to 8.70 per cent, down from 8.80 per cent. The one-year MCLR is 8.90 per cent, compared to 9.00 per cent before the revision.
Data On MCLR Across Banks
With these changes, all three banks have adjusted their lending benchmarks across both short-term and long-term tenures. State Bank of India has kept the three-month and six-month MCLR unchanged, while reducing other categories by five basis points.
Bank of Baroda has made larger cuts in shorter tenures, with reductions of up to 35 basis points in the one-month MCLR. Indian Overseas Bank has applied a uniform cut of 10 basis points across all categories.
