Big EMI Relief! Bank of Baroda Cut Lending Rates Up to 15 bps From August 12: Check New Rates

Public Sector lender, Bank of Baroda has announced a revision in its Marginal Cost of Funds Based Lending Rate, or the MCLR, across various tenors, effective August 12, 2025. The revised BOB lending rates will impact borrowers with floating-rate loans, including home loans, personal loans, and MSME loans linked to MCLR.

Revised Bank of Baroda MCLR Rates, Effective August 12, 2025

• The Overnight MCLR at Bank of Baroda has been reduced from 8.10 per cent to 7.95 per cent.
• The one-month MCLR has come down from 8.30 per cent to 7.95 per cent.
• The three-month MCLR has been revised downward from 8.50 per cent to 8.35 per cent.
• The six-month MCLR has been cut from 8.75 per cent to 8.65 per cent.
• The one-year MCLR has been lowered from 8.90 per cent to 8.80 per cent.

Impact on Borrowers

The Bank of Baroda MCLR cut will bring some relief to borrowers, especially for shorter tenors like overnight and one-month MCLR, which have been reduced by up to 15 basis points (bps). This could lead to lower EMIs for certain short-term loans.

However, the reduction is not uniform across all tenors, with the one-year MCLR, which is the benchmark for most retail loans such as home loans, seeing only a marginal 10 bps drop to 8.80% from the earlier 8.90%.

What is an MCLR?

The Marginal Cost of Funds Based Lending Rate is the minimum interest rate a bank can lend at, ensuring fair pricing of loans. MCLR-linked loan rates change with revisions in MCLR, impacting borrowers' monthly outgo.
With this MCLR rate revision, existing Bank of Baroda home loan and personal loan borrowers on floating rates will see changes in their interest rates at the next reset date.

Previous MCLR Changes In FY26

This is not the first time in recent months that Bank of Baroda has adjusted lending rates. The Bank in the current financial year has reduced its lending rates three times.

In April-June 2025, the bank also revised MCLR across tenors after the Reserve Bank of India's repo rate reduction.

Bank Of Baroda Share Today

On August 12, the Bank of Baroda share price was trading at Rs. 242.89 in the afternoon session, down Rs. 1.08 or 0.44% for the day. The stock has remained largely flat over the past five trading sessions, showing minimal movement of around 0.82% in the past month. However, over the last six months, Bank of Baroda shares have delivered a solid gain of 14.28%.