Banking: Bank of Baroda's big bang before the festive season, cuts MCLR rates, know when you will get the benefit..

Bank of Baroda MCLR Rate: Giving a big relief to the customers before the festive season, Bank of Baroda has announced a revision in its MCLR (Marginal Cost of Funds Based Lending Rate). The new rates will be applicable from 12 September 2025. This will have a direct impact on customers taking home loans, car loans, and other floating-rate loans.

The bank has reduced interest rates on some tenures, while the rates on others will remain the same. This will especially benefit those who have taken short-term loans.

What are the new MCLR rates?

The new revised MCLR rates of Bank of Baroda are as follows:

Bank of baroda

That is, the bank has cut 0.10% on overnight loans and 0.15% on three-month loans.

Who will get the benefit?

The reduction in MCLR will mainly benefit those customers whose loan interest rate is linked to MCLR. Due to the reduction in interest rates on overnight and three-month tenures, the EMI of those taking loans for a short period will be lighter. Customers who have recently taken short-term business loans, personal loans, or working capital loans will benefit the most from this reduction.

However, no change has been made to the tenure of six months and one year, so long-term loan holders will not get any relief at the moment.

Why were the rates reduced?

Banks keep revising their MCLR from time to time so that better options can be given to the customers according to market conditions and policy rates like repo rate.

The reason for the reduction in MCLR this time is -

Improvement in the liquidity situation

Reduction in pressure on interest rates

Boosting loan demand during the festive season

Why is it big news for customers?

Loan demand usually increases during festivals. People like to take loans for home, car, business, and personal expenses. In such a situation, the reduction in MCLR will reduce the burden of EMI for customers and it will become easier to take a loan.

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