Bank of Baroda has announced the outcome of its latest review of the Marginal Cost of Funds Based Lending Rate (MCLR), confirming that lending benchmark rates will remain unchanged across all tenors. The revised rate structure will come into effect from 12 March 2026.
Routine Review of Lending Benchmarks
The bank informed stock exchanges about the update through a regulatory filing made in line with SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015.
MCLR serves as an internal benchmark that banks use to determine the interest rates for various loan products. Financial institutions periodically review these rates based on funding costs, liquidity conditions, and broader market dynamics.
After completing the review, Bank of Baroda decided to retain its existing MCLR levels without any revisions.
Current MCLR Rates
The bank’s MCLR rates across different tenors remain as follows:
- Overnight MCLR:80%
- One-month MCLR:90%
- Three-month MCLR:15%
- Six-month MCLR:45%
- One-year MCLR:70%
Among these, the one-year MCLR is particularly important as it commonly acts as the benchmark rate for several retail loans, including home loans and certain business lending products.
What This Means for Borrowers
MCLR represents the minimum interest rate at which banks typically lend to customers, except in cases permitted by regulators. Any change in this benchmark can affect borrowing costs for individuals and businesses.
Since the latest review has kept all rates unchanged, customers whose loans are linked to Bank of Baroda’s MCLR are unlikely to see any immediate impact on their interest rates. However, the actual effect will depend on the reset cycle specified in each borrower’s loan agreement.
Summary
Bank of Baroda has completed its periodic review of the Marginal Cost of Funds Based Lending Rate and has decided to keep all benchmark lending rates unchanged. The updated structure will take effect from 12 March 2026, with the one-year MCLR continuing at 8.70%, meaning borrowers linked to this benchmark are unlikely to see any immediate change in their loan interest rates.
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