Bank of Baroda Revises MCLR Rates Effective August 12, 2025

Bank of Baroda (BoB) has lowered its Marginal Cost of Funds Based Lending Rate (MCLR) across key lending tenors, effective August 12, 2025, as per its latest exchange filing. The move is expected to influence borrowing costs for both retail and corporate customers.

Revised BOB MCLR Rates in August

Impact on Borrowers

The reduction in MCLR rates means borrowers with loans linked to these tenors especially floating rate loans could see a marginal drop in their interest costs.

• Home loan EMIs tied to one year MCLR are likely to get slightly cheaper.
• Shorter term corporate loans and working capital loans may also benefit from the reduced rates.

MCLR is the minimum interest rate a bank can lend at, excluding certain exceptions allowed by the RBI. It is revised periodically based on changes in the marginal cost of funds, operating costs, and the tenor premium.

RBI Holds Repo Rate at 5.5% in August MPC Meet

In its August monetary policy review, the Reserve Bank of India (RBI) kept the repo rate unchanged at 5.5%, Reserve Bank Governor Sanjay Malhotra announced on Wednesday, August 6, 2025. This decision follows the RBI’s move on June 6, 2025, when it cut the repo rate by 50 basis points, marking a shift towards a more accommodative stance to support economic growth.

Read More: RBI Keeps Repo Rate Unchanged at 5.5% in Aug 2025: What Does this Means for Car Loan EMIs?

Conclusion

With this MCLR cut, Bank of Baroda joins a growing list of lenders fine tuning their lending rates to align with changing funding costs and competitive pressures. Borrowers are advised to check their loan agreements to see if they can benefit from these new rates.

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