Indian Overseas Bank MCLR: Indian Overseas Bank has decided to lower its MCLR (Marginal Cost of Funds-Based Lending Rate) by 10 basis points for all loan periods. This new change will start from July 15, 2025. The bank’s Asset Liability Management Committee had a meeting on July 14, where this decision was taken after review. This move is likely to bring a little relief for people who have loans connected to MCLR, such as home loans or personal loans.
This is not the first time the bank has reduced rates recently. Back on June 12, 2025, the bank also cut down its Repo Linked Lending Rate (RLLR) by 50 basis points. It went down from 8.85% to 8.35%. With this second reduction now coming into play, customers can expect lower interest charges on their loan repayments.
| Tenor | Existing MCLR (%) (from Jan 15, 2025) | Revised MCLR (%) (from July 15, 2025) |
| Overnight | 8.25% | 8.15% |
| One Month | 8.50% | 8.40% |
| Three Months | 8.65% | 8.55% |
| Six Months | 8.90% | 8.80% |
| One Year | 9.10% | 9.00% |
Can You Claim Both HRA and Home Loan Tax Benefits This ITR Season?
What This Means for Loan Customers?
People who have taken loans from IOB based on MCLR might see their EMIs go down a bit. But this depends on the reset period mentioned in their loan papers. The bank does not cut EMI instantly for everyone. It updates the interest rate at regular intervals, so borrowers may have to wait till their reset date comes to see the change in their payments.
ITR Filing 2025-26: Four Common Mistakes Salaried Taxpayers Should Avoid
The MCLR is a rate that banks use to fix the minimum interest they can charge on loans. If it goes down, new loans and even some existing loans become cheaper over time. So, those who are planning to take a new loan or already have one with IOB could benefit from this rate cut. It can apply to loans like housing, auto, and personal loans that are based on the MCLR system.
