Karur Vysya Bank | Photo credit: BIJOY GHOSH
After the reduction, the overnight MCLR is 8.90 percent (previously 9.15 percent); the one- and three-month MCLR are 9.05 percent (9.30 percent); and the MCLR for six months and one year are 9.20 percent (9.45 percent).
Loans such as gold loans, loans against real estate, Kisan credit card loans and loans to non-MSME (corporate) borrowers are linked to MCLR.
The Bank’s deposit charges fell to 5.60 percent in the second quarter (Q2FY26) from 5.77 percent in the first quarter (Q1FY26).
According to the RBI, public sector banks still have a significant portion of their lending tied to the marginal cost of fund-based interest rates. On the other hand, private banks provide a large portion of their loans at interest rates based on external benchmarks.
In its latest monetary policy report, the central bank noted that the marginal costs of funds-based rates and other legacy rates – based on internal benchmarks and with longer reset periods – pose a barrier to faster policy transmission.
Published on November 22, 2025
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