7th August 2019 – RBI cuts repo rate by 35 bps to 5.40%

Current MCLR rate of Indian Overseas Bank ranges from 8.05% to 8.70% varying by reset frequency of the loan. Indian Overseas Bank revises MCLR rates on a monthly basis and benchmark its interest rates for home loan and other loans to MCLR rates of different tenor.

Tenure wise MCLR	IOB Rate Today
Overnight	8.05%
1 Month	8.20%
3 Month	8.35%
6 Month	8.40%
1 Year	8.50%
2 Year	8.60%
3 Year	8.70%
IOB Base Rate	9.45%

Indian Overseas Bank Interest Rates

Home Loan Interest Rates	8.65% * Floating	Detail
Loan Against Property Rates	10.85% * Floating	Detail
Personal Loan Interest Rates	12.70% to 15.25%	Detail
Business Loan Interest Rates	14.90% to 15.25%	Detail
Fixed Deposit Interest Rates	4.50% to 6.80%	Detail
RD Interest Rates	5.75% to 6.80%	Detail

MCLR of Indian Overseas Bank

Indian Overseas Bank revises its MCLR rate on a monthly basis. Latest MCLR rates of Indian Overseas Bank as announced on 10 Aug 2019 are:

• Overnight MCLR Rate is 8.05%. The rate was last revised on 10 Aug 2019 to 8.05% from 8.15%
• 1 Month MCLR Rate is 8.20%. The rate was last revised on 10 Aug 2019 to 8.20% from 8.30%
• 3 Month MCLR Rate is 8.35%. The rate was last revised on 10 Aug 2019 to 8.35% from 8.45%
• 6 Month MCLR Rate is 8.40%. The rate was last revised on 10 Aug 2019 to 8.40% from 8.50%
• 1 Year MCLR Rate is 8.50%. The rate was last revised on 10 Aug 2019 to 8.50% from 8.65%
• 2 Year MCLR Rate is 8.60%. The rate was last revised on 10 Aug 2019 to 8.60% from 8.75%
• 3 Year MCLR Rate is 8.70%. The rate was last revised on 10 Aug 2019 to 8.70% from 8.85%

Indian Overseas Bank MCLR Rate Trend

• Effective 1st April 2016, Indian Overseas Bank has been directed by RBI to fix its loan interest rates benchmarked to MCLR rate which is based on its marginal cost of funds. Earlier, the bank fixed its loan interest rates to Base Rate, which was based on total cost of funds of the bank. Indian Overseas Bank MCLR rates for different tenors range from 8.05% to 8.70%.
• RBI allows banks to set their own MCLR Rate based on their marginal cost of funds which means the cost of raising new funds for the bank. So, Indian Overseas Bank decides and announces its MCLR rate regularly based on prescribed formula and policy rate changes by RBI in its monetary policy.
• Note that the RBI does not decide the MCLR Rate of any bank. RBI only announces the repo rate, which influences the cost of raising new funds for the bank. Banks may or may not decide to change their MCLR rate in response to changes in the repo rate. For instance, Indian Overseas Bank may decide to bring a lower cut in their MCLR rate compared to a Repo Rate cut. If RBI cuts the repo rate by 50 basis points or 0.5%, IOB may decide to cut its 1 Year MCLR rate only by 0.25% based on its internal funding and liquidity position. Hence, it is important to compare the MCLR rate change of Indian Overseas Bank with that of RBI Repo Rate and MCLR Rate changes of other banks before taking a decision to take a loan from Indian Overseas Bank.
• MCLR rate can be revised by Indian Overseas Bank every month. However, it is not mandatory for Indian Overseas Bank to revise its rate every month and it may choose to retain the same rate for a longer period keeping them unchanged.

Indian Overseas Bank Home Loan Interest Rate and MCLR

• Every floating rate loan sanctioned by Indian Overseas Bank is benchmarked to its MCLR Rate for a particular tenure, say 1 month or 3 month or 6 months.
• Shorter duration loans such as cash credit, OD facility, personal loans are linked to short tenure MCLR rate while longer duration loans such as home loan, loan against property, vehicle loan are linked to longer duration MCLR rates.
• The applicable rate of interest on a floating rate loan will consist of two parts - the applicable benchmark rate and the spread or margin above the benchmark.
• Your loan from Indian Overseas Bank will be repriced periodically depending upon the tenure of the MCLR to which it is linked. Indian Overseas Bank home loan rate is benchmarked to 1 Year MCLR Base Rate which will be repriced after 1 Year. Say, you take a loan from IOB at current 1 Year MCLR rate of 8.50% plus spread of 20 bps. So, the loan will initially be priced at 8.7%. Its next re-pricing will be done after 1 Year from now. If the 3 Month MCLR rate after 1 Year increases by 10 bps, the loan will be priced at 8.8% for the next period.

Compare MCLR Rate Movement

Compare Indian Overseas Bank MLCR Rates with Other Banks