Indian Overseas Bank has announced a reduction in its Marginal Cost of Funds based Lending Rate (MCLR) by 5 basis points (bps) for select tenors. This decision was made during the Asset Liability Management Committee (ALCO) meeting held on 13 April 2026. The revised rates will come into effect from 15 April 2026.
The bank has reduced the Overnight, 1-Year, and 2-Year MCLR by 5 bps each. The Overnight MCLR will decrease from 7.95% to 7.90%, while the 1-Year and 2-Year MCLR will both be reduced from 8.80% to 8.75%. The rates for the One-Month, Three-Month, Six-Month, and Three-Year MCLR remain unchanged at 8.20%, 8.40%, 8.65%, and 8.85%, respectively.
The revised MCLR rates are part of the bank’s periodic review of its lending rates, aimed at ensuring competitive pricing for its customers. The changes are effective from 15 April 2026 and will remain in place until the next review.
The decision to revise the MCLR is significant for borrowers as it directly impacts the interest rates on loans linked to these benchmarks. A reduction in MCLR typically results in lower interest rates for borrowers, thereby reducing the cost of borrowing.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).