Till now in January 2026, many banks have taken big steps regarding loan interest rates. Marginal Cost of Funds Based Lending Rates (MCLR) have been reduced. Many banks including HDFC are included in this list. This decision will have a direct impact on the borrowing customers. There will be relief from loan interest rates. EMI will also be affected.

MCLR is the minimum rates based on which banks offer loans to customers. Whenever there is a change in the repo rate, fluctuations are also seen in MCLR. The Reserve Bank of India had cut repo rates by 25 bps on December 5, 2025. The effect of which is visible even in 2026. Currently the rates are 5.25%.

Indian Overseas Bank

official website http://iob.bank.in/ According to this, this public sector bank has implemented new MCLR rates from January 15, 2026. Rates for overnight tenure have been cut by 5 basis points. There is no change in the rest of the tenure. Rates for one month are 8.30%. MCLR for 3 months tenure is 8.40%, for 6 months is 8.65% and for one year is 8.80%. Whereas the rates for 2 years are 8.80% and for 3 years are 8.85%.

UCO Bank

UCO Bank had changed MCLR on January 11. A reduction of up to 5 bps was made. Overnight rates have reduced from 7.95% to 7.90%. Rates for one month have come down from 8.20% to 8.15%. Rates for 3 months are reduced from 8.45% to 8.40%. Rates for 6 months are 8.65% (earlier 8.70%) and for one year are 8.75% (earlier 8.80%). New Rates Official Website You can check by going to.

hdfc bank

This private sector bank has also cut MCLR in January. The new rates have come into effect from January 7. There has been a reduction of up to 10 bps. Overnight MCLR is 8.25%, 1 month 8.25%, 3 month 8.30% and 6 month 8.40%. The rates are 8.40% for one year, 8.50% for 2 years and 8.55% for 3 years. rates www.hdfc.bank.in You can check by going to.