Home loan EMIs of Bank of Baroda, PNB loans set to fall

In a move that could bring some relief to borrowers, state-owned lenders Bank of Baroda, Punjab National Bank (PNB), and Canara Bank have announced reductions in their marginal cost of funds-based lending rates (MCLR) across various tenures, effective from May 2025.

These public sector banks (PSBs) have lowered their MCLR rates, a key benchmark used by banks to set interest rates on floating-rate loans like home, personal, and auto loans, by 5-15 basis points for tenures ranging from overnight to three years, according to data on their websites.

What is MCLR?
The MCLR is a benchmark rate used by banks to determine interest rates on various floating-rate loans, including home loans, personal loans, and auto loans. A decrease in MCLR translates to a potential drop in equated monthly installments (EMIs) of loans or a shorter loan tenure, benefiting borrowers in the long term.

Also read: HDFC Bank cuts these lending rates by up to 15 bps; check details

Bank of Baroda: Check the latest lending rates
Bank of Baroda has reduced its one-year MCLR by 5 basis points in May, while other tenures remain unchanged from April. The overnight MCLR stands at 8.15%, the one-month MCLR at 8.35%, the three-month MCLR at 8.55%, and the six-month MCLR at 8.80%. The one-year MCLR has been revised to 8.95% from 9.00%. These rates are effective from May 12, 2025.
According to Bank of Baroda's website, "Base rate (per annum) effective from 12.05.2025 is 9.45% p.a. BPLR effective from 12.05.2025 is 13.75 % p.a."


Canara Bank: Check the latest lending rates
Public sector lender Canara Bank has lowered its overnight MCLR from 8.30% to 8.20% and its one-month MCLR from 8.35% to 8.25%. The three-month MCLR is now at 8.45%, down from 8.55%, while the six-month MCLR has been lowered to 8.80% from 8.9%. The one-year MCLR has been reduced from 9.10% to 9.00%. Similarly, the two-year and three-year MCLR have been brought down by 10 basis points each, now standing at 9.15% and 9.20%, respectively, compared to 9.25% and 9.30% earlier. The new rates are effective from May 12, 2025.

Also read: Personal loan interest rates May 2025: Which bank is offering the lowest interest rate?



Punjab National Bank: Check the lending rates
Punjab National Bank, the country's second-largest PSB in business volume, has reduced its overnight MCLR from 8.40% to 8.25% and its one-month MCLR from 8.50% to 8.40%. The three-month MCLR now stands at 8.60%, down from 8.70%, and the six-month MCLR has been revised to 8.80% from 8.90%. The one-year MCLR has been cut from 9.05% to 8.95%, and the three-year MCLR has been brought down by 10 basis points, from 9.35% to 9.25%. The bank has revised its marginal cost of funds-based lending rates (MCLR) effective May 1, 2025.

Source: Bank website