MCLR Rates 2026 — SBI, HDFC Bank, PNB, Canara
Current MCLR by tenure at major banks, how MCLR home loans reset and whether to switch to a repo-linked rate.
Updated 27 September 2026 · 17 lenders trackedWhat you need to know
The Marginal Cost of Funds based Lending Rate (MCLR) was the benchmark for bank loans from April 2016 until October 2019, when new floating-rate retail loans moved to external benchmarks. Many older home loans are still on MCLR, usually the 1-year MCLR, and reset only once a year — so they pass on repo cuts slowly.
MCLR by bank and tenure
| Bank | Overnight | 1 month | 3 months | 6 months | 1 year | 3 years | Effective |
|---|---|---|---|---|---|---|---|
| SBI | 7.85% | 7.85% | 8.25% | 8.60% | 8.70% | 8.80% | 15 Sep 2026 |
| HDFC Bank | 7.90% | 7.90% | 8.05% | 8.25% | 8.35% | 8.60% | 7 Sep 2026 |
| PNB | 8.00% | 8.25% | 8.50% | 8.65% | 8.80% | 9.10% | 1 Sep 2026 |
| Canara Bank | 7.95% | 8.00% | 8.25% | 8.60% | 8.75% | 9.05% | 12 Jun 2026 |
| Bank of Baroda | — | — | — | — | 8.70% | — | Unchanged (12 Sep 2026) |
Most MCLR home loans are linked to the 1-year MCLR and reset once a year on the reset date. SBI’s base rate is 9.90% (15 Sep 2026). Sources: bank MCLR pages and financial press, Sep 2026.
MCLR vs repo-linked (EBLR)
| Point | MCLR | EBLR |
|---|---|---|
| Based on | Bank’s cost of funds | RBI repo rate (external) |
| Reset | Usually annual (1-year MCLR) | At least every 3 months |
| Transparency | Internal calculation | Benchmark is public |
| Current SBI example | 1-year MCLR 8.70% | EBLR 7.90% |
Should you switch?
- CompareCheck your effective rate against the lender’s current repo-linked rate for your profile.
- Ask for conversionBanks offer a switch to EBLR, sometimes for a fee; you sign a fresh agreement.
- Consider balance transferIf your bank will not match, compare other lenders.
Frequently asked questions
Is MCLR still used for new home loans?
Not for new floating-rate retail loans at banks, which must use an external benchmark. MCLR still applies to older loans and many business loans.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.