South Indian Bank has raised its marginal cost of funds-based lending rates (MCLR) by 5 basis points across all tenures, the lender informed stock exchanges on Saturday.
Following the revision, South Indian Bank’s MCLR will range from 8.20% to 9.50% for tenures ranging from overnight to one year.
The bank disclosed the revision in a filing to stock exchanges under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The revised MCLR rates for different tenures are as follows:
| Tenure | MCLR |
|---|---|
| Overnight | 8.20% |
| One month | 8.55% |
| Three months | 9.25% |
| Six months | 9.30% |
| One year | 9.50% |
The revised rates will take effect from October 20, 2026,
About MCLR
What Is MCLR?
The marginal cost of funds-based lending rate (MCLR) is a benchmark used by banks to set interest rates on certain loans. Introduced by the Reserve Bank of India (RBI) in April 2016, it reflects factors such as a bank’s cost of funds and operating costs.
How Does An MCLR Hike Affect Borrowers?
An increase in MCLR can raise borrowing costs for customers whose loans are linked to the benchmark. The impact depends on the loan terms and the date on which the interest rate is reset.Depending on the loan agreement, borrowers may see a change in their equated monthly instalments (EMIs) or repayment tenure. Customers with loans linked to other benchmarks may not be directly affected by this revision.
