IOB Raises Lending Benchmarks By 5 Basis Points, One-Year MCLR Moves To 8.90%
Mumbai: Indian Overseas Bank has increased its Marginal Cost of Funds based Lending Rate by five basis points across most tenors, effective October 15, 2026. The one-month benchmark remains unchanged, according to the bank’s announcement. The revision raises overnight, three-month, six-month, one-year, two-year and three-year MCLR rates . Five basis points equal 0.05 percentage points, making the…
Indian Overseas Bank has raised its lending benchmarks by five basis points, effective October 15, 2026. The adjustment raises the overnight, three-month, six-month, one-year, two-year, and three-year MCLR rates across the bank's most common tenors. The overnight rate will increase from 7.90% to 7.95%, while the one-month MCLR remains unchanged at 8.25%.
Three-month and six-month benchmarks move up to 8.50% and 8.75%, respectively. The one-year and two-year MCLR will both be 8.90%, and the three-year rate will reach 8.95%. These revised benchmarks apply to various loan products linked to MCLR. For borrowers with existing MCLR-linked loans, the impact depends on contractual reset dates and other loan terms.
The announcement provides the revised benchmarks and effective date, but not the specific interest rates or installment changes for individual customers.
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