Indian Overseas Bank Headquarters in Chennai | Photo credit: RAGHUNATHAN SR
The bank has reduced its External Benchmark Lending Rate (EBLR) – specifically the Repo Linked Lending Rate (RLLR) – by 25 basis points from 8.35 percent to 8.10 percent, fully passing on the policy rate reduction to its customers.
In addition, the Bank’s Asset Liability Management Committee (ALCO) has approved a reduction in the Marginal Cost of Funds Based Lending Rate (MCLR) by 5 basis points over maturities ranging from three months to three years.
“These revisions will reduce Equated Monthly Installments (EMIs) for both existing and new borrowers whose loans are linked to these benchmarks. Retail customers looking for home, auto and personal loans will benefit from improved affordability. SME and corporate borrowers will also experience a reduction in their borrowing costs, which will support working capital needs and support business growth,” the public sector bank said in a statement.
Published on December 12, 2025
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