Latest lending rate in February 2025: HDFC Bank, Bank of Baroda, PNB, Canara Bank, IDBI Bank

Borrowers with loans linked to the Marginal Cost of Funds-Based Lending Rate (MCLR) will experience fluctuations in their Equated Monthly Installments (EMIs) based on changes in the MCLR set by their respective banks. When the MCLR increases, the cost of borrowing rises, leading to higher EMIs, whereas a reduction in MCLR results in lower EMIs, making loan repayment more affordable.

In February 2025, several banks made adjustments to their MCLR, affecting borrowers differently. HDFC Bank and Punjab National Bank (PNB) increased their MCLR, which could lead to higher loan interest rates for their customers. On the other hand, Canara Bank took a more borrower-friendly approach by reducing its MCLR by 10 basis points (bps), potentially lowering EMIs for its customers with loans linked to MCLR. Meanwhile, Bank of Baroda and IDBI Bank opted to keep their MCLR unchanged, meaning their borrowers will not see any immediate impact on their loan interest rates.

Also read: Lower EMI for home loan borrowers of Canara Bank, PNB, Union Bank and others as these banks cut repo linked lending rates


However, note that the changes will depend on the specific tenure of the MCLR linked to the loan and whether it has been revised or not.

What is MCLR?

MCLR stands for Marginal Cost of Funds Based Lending Rate. It is the minimum interest rate below which banks are not permitted to lend to borrowers. MCLR regime was effective from 1 April 2016. However, it was later replaced with an external benchmark based lending rate (EBLR) regime from October 1, 2019. While all new floating rate loans are linked to EBLR, there are many old borrowers, who took their loan during the MCLR regime and still have not shifted their loans to new regime EBLR, who continue with pay interest as per MCLR regime.

Canara Bank: Check lending rates
Canara Bank has decreased its Marginal Cost of Funds-Based Lending Rate (MCLR) by 10 basis points for a one-month period from 8.45% to 8.30%.
Canara Bank's other tenure MCLR remains unchanged from previous month’s rates. The overnight rate stands at 8.35. The three-month MCLR stands at 8.55%. The six-month MCLR is 8.90%. The one-year MCLR is 9.10% and the two-year MCLR is 9.35%. The new rate is effective from February 12, 2025.

Bank of Baroda: Check latest lending rates
Bank of Baroda MCLR in January remains unchanged from the previous month’s rates. The overnight MCLR is 8.15%. The one-month MCLR is at 8.35%. The three-month MCLR is at 8.55%. The six-month MCLR is 8.80%. The one-year MCLR is at 9%. The rates are effective from February 12, 2025.

HDFC Bank: Check latest lending rate
HDFC Bank has increased its Marginal Cost of Funds-based Lending rate (MCLR) on one tenure by up to 5 basis points (bps). After the revision, HDFC Bank MCLR will now range between 9.20% and 9.45%. The revised rates are applicable from February 7, 2025 onwards.

Punjab National Bank: Check latest lending rates
Punjab National Bank has increased the lending rate by 5 bps on all tenures. After a 5 bps hike, the rate for the overnight MCLR is 8.40% and the MCLR-based lending rate for one month is 8.50%. The three-month rate is 8.70%, the one-year rate is 9.05% and the rate on the three-year tenure is 9.35%. The rates are effective from February 1, 2025. Note that this hike announcement was made before the RBI rate cut announcement.

IDBI Bank loan rates update: Check latest lending rates
The bank has kept the MCLR unchanged from previous rates. According to the IDBI Bank website, the latest MCLR for overnight tenor is 8.45%. For a one-month tenure, the MCLR is at 8.60%. The three-month MCLR rate for IDBI Bank customers is at 8.90%. The six-month MCLR is at 9.15%. The one-year MCLR is 9.20%. The two-year MCLR is 9.75%. The three-year MCLR is at 10.15%. These rates are effective February 12, 2025 onwards.