{"id":5414,"date":"2025-08-15T09:58:43","date_gmt":"2025-08-15T09:58:43","guid":{"rendered":"https:\/\/tezgyan.com\/index.php\/2025\/08\/15\/indian-overseas-bank-announces-10-basis-points-mclr-cut-from-august-15-check-new-rates-banking-and-finance-news\/"},"modified":"2025-08-15T09:58:43","modified_gmt":"2025-08-15T09:58:43","slug":"indian-overseas-bank-announces-10-basis-points-mclr-cut-from-august-15-check-new-rates-banking-and-finance-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/08\/15\/indian-overseas-bank-announces-10-basis-points-mclr-cut-from-august-15-check-new-rates-banking-and-finance-news\/","title":{"rendered":"Indian Overseas Bank Announces 10 Basis Points MCLR Cut From August 15, Check New Rates | Banking and Finance News"},"content":{"rendered":"


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Indian Overseas Bank will cut the Marginal Cost of Fund-Based Lending Rate (MCLR) by 10 basis points from August 15, 2025, following a similar cut in July.<\/h2>\n
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India Overseas Bank cuts MCLR rate by 10 bps.<\/p>\n<\/figure>\n

Indian Overseas Bank has announced to cut the Marginal Cost of Fund-Based Lending Rate (MCLR) by 10 basis points, effective from August 15, 2025.<\/p>\n

The Asset Liability Management Committee (ALCO) of Indian Overseas Bank, in its meeting on August 11, 2025, announced a 10-basis point reduction in the Marginal Cost of Funds-based Lending Rate (MCLR) across all tenors. The revised rates are effective from August 15, 2025.<\/p>\n

The decision follows the committee\u2019s review of the bank\u2019s MCLR as on August 8, 2025, and marks the second consecutive cut in recent months, after a similar reduction implemented in July. The move is expected to bring relief to borrowers, as lower MCLR directly impacts interest rates on floating-rate loans such as home loans, personal loans, and certain corporate borrowings.<\/p>\n

The bank\u2019s MCLR cut came despite RBI in its August MPC meeting kept the repo rate unchanged at 5.55 per cent, with the \u2018Neutral\u2019 stance.<\/p>\n

Under the new structure, the overnight MCLR has been reduced from 8.15% to 8.05%, while the one-month rate will stand at 8.30% compared to 8.40% earlier. The three-month MCLR will come down to 8.45% from 8.55%, and the six-month rate will be 8.70%, down from 8.80%. The one-year MCLR \u2014 often used as a benchmark for home loans \u2014 will now be 8.90%, compared to 9.00% previously.<\/p>\n

Revised MCLR effective August 15, 2025:<\/h3>\n

Overnight: 8.05% (from 8.15%)<\/p>\n

One Month: 8.30% (from 8.40%)<\/p>\n

Three Month: 8.45% (from 8.55%)<\/p>\n

Six Month: 8.70% (from 8.80%)<\/p>\n

One Year: 8.90% (from 9.00%)<\/p>\n

How Will It Impact Borrowers?<\/h3>\n
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Suppose you have a home loan of Rs 40 lakh linked to a 1-year MCLR at the old rate of 9.00%. Your EMI for a 20-year tenure would be roughly Rs 35,990.<\/p>\n

After the bank cuts the 1-year MCLR by 10 basis points to 8.90%, your EMI would drop to about Rs 35,823 \u2014 a saving of around Rs 167 per month, or about Rs 2,000 a year.<\/p>\n

For personal loans (usually smaller but at higher interest rates), the cut works the same way \u2014 slightly lowering EMIs and total interest over the loan\u2019s life.<\/p>\n

It\u2019s not a massive monthly relief, but over years, it adds up and makes borrowing cheaper.<\/p>\n<\/div>\n

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Varun Yadav<\/a><\/p>\n

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<\/span><\/p>\n<\/div>\n<\/div>\n

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<\/span><\/p>\n<\/div>\n<\/div>\n

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Last Updated:August 15, 2025, 14:31 IST Indian Overseas Bank will cut the Marginal Cost of Fund-Based Lending Rate (MCLR) by 10 basis points from August 15, 2025, following a similar cut in July. India Overseas Bank cuts MCLR rate by 10 bps. Indian Overseas Bank has announced to cut the Marginal Cost of Fund-Based Lending…<\/p>\n","protected":false},"author":1,"featured_media":5415,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[],"class_list":["post-5414","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/5414","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/comments?post=5414"}],"version-history":[{"count":0,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/5414\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media\/5415"}],"wp:attachment":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media?parent=5414"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/categories?post=5414"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/tags?post=5414"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}