MCLR, or Marginal Cost of Funds-based Lending Rate, is the minimum interest rate that banks use to decide how much interest to charge on different types of loans, such as home loans, personal loans, and car loans.
This system was introduced by the Reserve Bank of India to make loan rates more transparent and to ensure that any changes in the RBI’s policy rates are quickly reflected in the rates banks offer to customers. Banks review and update their MCLR every month based on factors like the repo rate and their own cost of borrowing.
June 2025 MCLR Rates: Bank-Wise Breakdown
Here’s a quick look at the latest MCLR rates for some of India’s leading banks in June 2025:
| Bank | Overnight | 1 Month | 3 Months | 6 Months | 1 Year | 2 Years | 3 Years |
| State Bank of India | 8.20% | 8.20% | 8.55% | 8.90% | 9.00% | 9.05% | 9.10% |
| Punjab National Bank | 8.25% | 8.40% | 8.60% | 8.80% | 8.95% | – | 9.25% |
| Canara Bank | 8.00% | 8.05% | 8.25% | 8.60% | 9.00% | 8.95% | 9.00% |
| HDFC Bank | 8.90% | 8.90% | 8.95% | 9.05% | 9.05% | 9.10% | 9.10% |
| Bank of Baroda | 8.15% | 8.30% | 8.50% | 8.75% | 8.90% | – | – |
State Bank of India (SBI)
- No change in rates this month.
- All tenures remain steady, with the one-year MCLR at 9.00%.
Punjab National Bank (PNB)
- Rates are unchanged for June.
- The one-year MCLR is 8.95%, and the three-year MCLR is 9.25%.
Canara Bank
- Lending rates have been reduced by 20 basis points.
- Overnight MCLR is now at 8.00%, and the one-year MCLR is 9.00%.
HDFC Bank
- MCLR rates have dropped by 10 basis points on several tenures.
- Overnight and one-month MCLR are now at 8.90%, while the one-year MCLR is 9.05%.
Bank of Baroda
- Overnight MCLR remains at 8.15%.
- Most other tenures have seen a slight reduction, with the one-year MCLR now at 8.90%.
Why Do Banks Revise MCLR?
Banks update their MCLR to reflect changes in their cost of funds, which can be influenced by the RBI’s monetary policy decisions, such as changes in the repo rate. This ensures that borrowers benefit from lower interest rates when the RBI reduces rates, and it also keeps loan pricing fair and competitive.
