Bank of Baroda revises MCLR Rate from 12th August 2025, Check New Rates

Bank of Baroda has revised Marginal Cost of Funds Based Lending Rate (MCLR) w.e.f. 12th August 2025 as under:

MCLR Tenors	Existing MCLR (in %)	MCLR (in %) w.e.f. 12th August 2025
Overnight	8.10	7.95
One Month	8.30	7.95
Three Month	8.50	8.35
Six Month	8.75	8.65
One Year	8.90	8.80

Marginal Cost of Funds Based Lending Rate (MCLR) is the minimum interest rate that a bank can charge a borrower for a loan. In simple terms, it’s like a base price for loans — banks cannot give loans below this rate (except in certain special cases allowed by the Reserve Bank of India).

MCLR was introduced by the RBI in April 2016 to make lending rates more transparent. It is calculated based on the marginal cost of funds (the latest cost banks pay for deposits), operating costs, and the required profit margin.

Banks usually have different MCLR rates for different loan tenures (like overnight, 1 month, 3 months, 6 months, 1 year, etc.). Loan interest rates are often fixed as MCLR + spread (spread is an extra percentage decided by the bank).

For example, if the one-year MCLR is 8% and the bank’s spread is 0.5%, then the effective loan rate will be 8.5%.