Loan customers could soon get some relief as HDFC BoB PNB IOB and BOI reduced their MCLR rates in September 2025. This move may lower EMIs or shorten loan tenures. However SBI and IDBI kept their lending rates unchanged bringing no relief to their customers. What Is MCLR? MCLR (Marginal Cost of Funds-based Lending Rate) is the rate at which banks offer floating-rate loans like home loans personal loans and auto loans. A cut in MCLR can reduce EMIs for existing borrowers or shorten their loan tenure. While most new loans are now linked to EBLR (External Benchmark Lending Rate) rather than MCLR existing borrowers can choose to transition from MCLR to EBLR. HDFC Bank Loan Rates HDFC Bank has kept its overnight and one-month MCLR constant at 8.55% while the three-month MCLR remains at 8.60%. The bank cut its six-month and one-year MCLR by 5 basis points from 8.70% to 8.65%. The two-year MCLR was also reduced from 8.75% to 8.70% while the three-year MCLR remains unchanged at 8.75%. 6 months: 8.70% → 8.65% 1 year: 8.70% → 8.65% 2 years: 8.75% → 8.70% Other tenures (Overnight 1 month 3 months 3 years): No change SBI Loan Rates SBI’s MCLR ranges between 7.90% and 8.85%. Overnight: 7.90% 1 month: 7.90% 3 months: 8.30% 6 months: 8.65% 1 year: 8.75% 2 years: 8.80% 3 years: 8.85% Bank of Baroda Loan Rates Effective September 12 2025 Bank of Baroda revised its MCLR. Overnight: 7.95% → 7.85% (10 bps cut) 3 months: 8.35% → 8.20% (15 bps cut) 1 month (7.95%) 6 months (8.65%) 1 year (8.80%): Unchanged Indian Overseas Bank Loan Rates Effective September 15 2025 IOB reduced select MCLR rates. Overnight: 8.05% → 8.00% 1 year: 8.90% → 8.85% 2 years: 8.90% → 8.85% 3 years: 8.95% → 8.90% 1 month (8.30%) 3 months (8.45%) 6 months (8.70%): No change IDBI Bank Loan Rates Effective September 12 2025 IDBI’s MCLR remains unchanged. Overnight: 8.05% 1 month: 8.20% 3 months: 8.50% 6 months: 8.70% 1 year: 8.75% 2 years: 9.30% 3 years: 9.70% PNB Loan Rates Effective September 1 2025 PNB reduced MCLR rates across multiple tenures. Overnight: 8.15% → 8.00% 1 month: 8.30% → 8.25% 3 months: 8.50% → 8.45% 6 months: 8.70% → 8.65% 1 year: 8.85% → 8.80% 3 years: 9.15% → 9.10% Bank of India Loan Rates Effective September 1 2025 BOI cut MCLR rates by 5–15 bps across most tenures except overnight. 1 month: 8.40% → 8.30% 3 months: 8.55% → 8.45% 6 months: 8.80% → 8.70% 1 year: 8.90% → 8.85% 3 years: 9.15% → 9.00% Overnight: No change (7.95%) However SBI and IDBI customers won’t benefit until these banks revise their lending rates in the future.