Latest lending rates in March 2025: HDFC Bank, Bank of Baroda, Canara Bank, IDBI Bank, Bank of India
With interest rates being a key factor in home loans, personal loans, and corporate borrowings, understanding the latest rates can help borrowers make informed financial decisions. Below is an overview of the latest lending rates across major Indian banks.
What is MCLR?
MCLR stands for the marginal cost of funds-based lending rate. It is the minimum interest rate below which banks are not permitted to lend to borrowers. The Reserve Bank of India (RBI) introduced the MCLR regime on April 1, 2016. However, it was later replaced with the external benchmark- based lending rate (EBLR) regime from October 1, 2019, so that lending rates move in sync with policy rates. Although all new floating rate loans are tied to EBLR, many existing borrowers who took their loans during the MCLR regime have yet to transition to the EBLR system and continue to pay interest as per the MCLR regime.
Canara Bank's lending rates
Canara Bank has reduced the marginal cost of funds-based lending rate (MCLR) across select tenures. The bank has reduced overnight MCLR by 5 basis points (bps), bringing it down from 8.35% to 8.30%. The one-month, three-month, six-month, and one-year MCLR rates have remained unchanged at 8.35%, 8.55%, 8.90%, and 9.10%, respectively. The two-year MCLR has been reduced from 9.35% to 9.25%, reflecting a 10-basis point cut, while the three-year MCLR has seen a 15-basis point decline- from 9.45% to 9.30%.
