Good News For Borrowers! Loans to Get Cheaper in September 2025; PNB, BOI Reduce Their MCLR Rates

Good News For Borrowers! Loans to Get Cheaper in September 2025; PNB, BOI Reduce Their MCLR Rates

There is good news for the individuals who hold accounts with Punjab National Bank (PNB) and Bank of India (BOI). As per the recent reports, PNB and BOI have reduced their marginal cost of funds-based lending rates (MCLR), resulting in accessibility of loans at affordable rates for those whose loans are linked to MCLR. Punjab National Bank (PNB) has reduced its MCLR by 15 basis points, while Bank of India (BOI) has cut its MCLR by 5 to 15 basis points. These changes are implemented on all tenures except for overnight tenures.

Only these two banks have made changes to their lending rates, effective in September 2025. However, in the monetary policy (MPC) meeting held on August 06, 2025, the Reserve Bank of India (RBI) did not decide to make any amendment to its repo rate (5.5%).