Good News For Loan Customers: If you have a loan with Punjab National Bank (PNB) or Bank of India (BoI), your EMIs just got lighter!
Interest Rates Reduced: Both banks have cut their MCLR (Marginal Cost of Funds-Based Lending Rates) from September 1, 2025. Home, car, and personal loans linked to MCLR will now come with lower interest rates.
MCLR is the internal benchmark that banks use to determine interest rates on floating-rate loans such as housing, auto, and personal loans. (Representational Image)
PNB’s New Interest Rates: Overnight: 8.15% → 8%, 1 Yr: 8.85% → 8.80%, 3 Yrs: 9.15% → 9.10%
BoI’s New Interest Rates: 1 Month: 8.40% → 8.30%, 1 Yr: 8.90% → 8.85%, 3 Yrs: 9.15% → 9%
What It Means For You: Lower MCLR = Lower EMIs. Perfect relief for existing borrowers whose loans are still linked to MCLR.