Bank of Baroda Raises MCLR By 5 Basis Points, Borrowing Costs Set To Increase From June 12

Mumbai: State-owned Bank of Baroda has announced a revision in its Marginal Cost of Funds Based Lending Rate (MCLR), making loans linked to the benchmark slightly more expensive.

The bank informed stock exchanges that the revised rates will come into effect from June 12, 2026. The change follows a review of the bank’s lending rate structure.

MCLR Increased Across All Tenures

According to the bank’s filing, MCLR rates across all major tenures have been increased by 5 basis points.

The overnight MCLR has been raised from 7.80 percent to 7.85 percent, while the one-month MCLR has been increased from 7.90 percent to 7.95 percent. The three-month MCLR now stands at 8.20 percent, compared with 8.15 percent earlier.

Similarly, the six-month MCLR has been revised upward to 8.50 percent from 8.45 percent, while the one-year MCLR, which serves as the benchmark for many retail loans, has been increased to 8.75 percent from 8.70 percent.

Impact On Borrowers

The revision is likely to affect borrowers whose home, vehicle or business loans are linked to MCLR-based lending rates.

For such customers, borrowing costs may rise when their loans come up for interest rate reset, potentially leading to slightly higher monthly instalments. The actual impact will depend on the loan amount, tenure and reset schedule.

Part Of Industry Trend

The move comes at a time when several banks have been reviewing their lending rates in response to funding costs and liquidity conditions.

While new borrowers may see revised rates immediately, existing customers linked to MCLR will experience changes according to the terms of their loan agreements.

Bank of Baroda disclosed the revision through a regulatory filing under SEBI’s Listing Obligations and Disclosure Requirements regulations.

Disclaimer: Based on Bank of Baroda’s regulatory filing dated June 10, 2026. Actual loan rates may vary by product and borrower profile.