Synopsis
Canara Bank has reduced its Marginal Cost of Funds Based Lending Rates (MCLR) by 5 basis points across all tenures, effective November 12, 2025. This move is expected to lower EMIs for borrowers with floating rate loans. In contrast, Bank of Baroda and IDBI Bank have maintained their MCLR rates unchanged.
ET OnlineCanara Bank has reduced its marginal cost of fund-based lending rates (MCLR) by 5 basis points across tenures. The move could lead to lower EMIs for borrowers with floating rate home, auto and personal loans. The new MCLR rates of Canara Bank are effective from November 12, 2025.
On the other hand, Bank of Baroda has kept the lending rates unchanged.
What is MCLR?
The marginal cost of fund-based lending rate, or MCLR, is a benchmark rate used by banks to determine interest rates on various floating rate loans, including home loans, personal loans, and automobile loans. A decrease in MCLR translates to a potential drop in equated monthly instalments (EMIs) of loans or a shorter loan tenure, benefiting borrowers in the long term.
Canara Bank’s revised lending rates (MCLR)
Public sector lender Canara Bank has lowered its lending rates by 5 bps, or 0.05%. After the revision, its overnight MCLR has been reduced to 7.90% from 7.95%, while the bank has trimmed its one-month MCLR from 8% to 7.95%. The bank’s three-month MCLR is now 8.15% after being cut from 8.20%. While the six-month MCLR has been lowered to 8.50% from 8.55%. The one-year MCLR has been reduced from 8.75% to 8.70%. Similarly, the two-year and three-year MCLRs have been brought down by 5 basis points each, now standing at 8.85% and 8.90%, respectively.
Bank of Baroda lending rates
Bank of Baroda has kept its Marginal Cost of Fund-based Lending Rates (MCLR) unchanged. The bank’s overnight MCLR is 7.85%, the one-month MCLR is 7.90%, the three-month MCLR is 8.20%, the six-month MCLR stands at 8.60%, and the one-year MCLR stands at 8.75%.
Latest Bank of Baroda MCLR rates
| MCLR Benchmark | MCLR in (%) w.e.f 12.11.2025 | |
| 1 | Overnight MCLR | 7.85 |
| 2 | 1 Month MCLR | 7.9 |
| 3 | 3 Month MCLR | 8.2 |
| 4 | 6 Month MCLR | 8.6 |
| 5 | 1 Year MCLR | 8.75 |
IDBI Bank lending rates
IDBI Bank has also kept its MCLRs unchanged across categories. The overnight MCLR stands at 8.00%, the one-month MCLR at 8.15%, the three-month MCLR at 8.50%, the six-month MCLR at 8.70%, and the one-year MCLR at 8.75%. For longer tenors, the two-year MCLR is 9.30%, while the three-year MCLR is 9.70%.
Latest IDBI Bank MCLR rates
| Tenor | MCLR |
| Overnight MCLR | 8.00% |
| One Month MCLR (1M) | 8.15% |
| Three Month MCLR (Q) | 8.50% |
| Six Month MCLR (HY) | 8.70% |
| One year MCLR (Y) | 8.75% |
| Two Year MCLR (2Y) | 9.30% |
| Three Year MCLR (3Y) | 9.70% |
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