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Earlier, the bank had reduced Repo Linked Lending Rate (RLLR) by 50 basis points – from 8.85% to 8.35%—with effect from June 12.
Indian Overseas Bank cuts MCLR by 10 bps.
IOB MCLR Rates: India Overseas Bank has announced to cut the MCLR rate by 10 basis points across all tenors. The new rates will come into effect from July 15, 2025. Earlier, the bank had reduced Repo Linked Lending Rate (RLLR) by 50 basis points – from 8.85% to 8.35%—with effect from June 12.
It had come after the Reserve Bank of India-led by Sanjay Malhotra, unanimously decided to cut the repo rate by 50 bps to 5.50 per cent from 6 per cent. It was the third time that the central bank slashed the key benchmark lending rate, given that inflation was under control.
A cut in MCLR is generally good news for borrowers, as it can lead to cheaper loans and lower EMIs.
The revised MCLR w.e.f 15.07.2025 are as below:
| Sr No | Tenor | Existing MCLR %
w.e.f 15.01.2025 |
Revised MCLR % w.e.f 15.07.2025 |
| 1 | Overnight MCLR | 8.25 | 8.15 |
| 2 | One – Month MCLR | 8.50 | 8.40 |
| 3 | Three – Month MCLR | 8.65 | 8.55 |
| 4 | Six – Month MCLR | 8.90 | 8.80 |
| 5 | One Year MCLR | 9.10 | 9.00 |
Earlier, several lenders, including Bank of India, UCO Bank, Punjab National Bank, Bank of Baroda, HDFC Bank and many more have announced to reduce MCLR or RLLR rates following the RBI’s decision on repo rate. It makes new loans cheaper for borrowers and existing EMIs on loans lower.
Bank of Baroda, HDFC Follow RBI’s Action
Bank of Baroda (BoB) too cut its benchmark lending rate linked to repo rate by 50 bps. Likewise, HDFC Bank reduced its Marginal Cost of Funds-based Lending Rates (MCLR) by 10 bps across tenure. It will benefit borrowers.
FD Rates Decrease
Lenders such as ICICI Bank, HDFC Bank and Kotak Mahindra Bank have announced the new FD rates for different tenures, shedding rates by few points.
When the repo rate decreases, it becomes easier for banks to borrow funds. So they don’t need to rely on public to gather funds via FDs, therefore, they try to dissuade them or lower their cost of funds by lowering the rates.
ICICI Bank has revised its fixed deposit (FD) interest rates, lowering them by 25 basis points (bps) across select tenures. The new rates came into effect from June 10, 2025, and apply to both general and senior citizens for deposits below Rs 3 crore.
HDFC Bank has reduced interest rates on select fixed deposit (FD) tenures by up to 25 basis points (bps). It applies to deposits less than 3 crore and becomes effective from June 10, 2025.
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
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