Indian Overseas Bank cuts lending rates effective December 15

Indian Overseas Bank (IOB) has revised its Marginal Cost of Funds Based Lending Rate (MCLR) and External Benchmark Lending Rate (EBLR), with changes effective from December 15, 2025. The bank's Assets and Liabilities Management Committee (ALCO) reviewed the MCLR workings as of December 10, 2025, leading to a 5 basis points (bps) reduction in the three-month, six-month, and one-year MCLR.

Specifically, the three-month MCLR will decrease to 8.40% from 8.45%, the six-month MCLR to 8.65% from 8.70%, and the one-year MCLR to 8.80% from 8.85%. The overnight and one-month MCLRs remain unchanged at 8.00% and 8.30% respectively.

Additionally, following a 25 bps Repo Rate cut by the RBI, IOB's ALCO decided to reduce its External Benchmark Lending Rate (EBLR) by 25 bps. The Repo Linked Lending Rate (RLLR) will decrease to 8.10% from 8.35%, and the Repo Rate will be 5.25% from 5.50%.