Archive · 14 Jan 2026
Indian Overseas Bank Cuts Overnight MCLR
Indian Overseas Bank, a government-owned bank in India, has lowered its overnight MCLR, which is the rate at which it lends money, by a small amount (5 basis points) to 7.95%.
This change will start on January 15, 2026.
The bank's decision was made after a meeting on January 13, 2026, where they reviewed their lending rates.
Other lending rates for different time periods, like one month, three months, and one year, have not changed.
For people who have loans linked to these rates, most won't see a change in their interest costs.
However, new borrowers might get loans at rates between 8.30% and 8.85%, depending on how long they take to pay back the loan.
The bank's stock price went up slightly on January 14, 2026.
Indian Overseas Bank (IOB) reduced its overnight MCLR by 5 basis points to 7.95%, effective January 15, 2026.
The decision was made by the bank's Asset Liability Management Committee (ALCO) on January 13, 2026, after reviewing MCLR calculations as of January 10, 2026.
All other MCLR tenors remain unchanged, with rates ranging from 8.30% (one-month) to 8.85% (three-year).
Existing borrowers' loan interest costs will largely remain unchanged, while new borrowers may face rates between 8.30% and 8.85% depending on loan tenure.
IOB's stock price ended at ₹35.48 on January 14, 2026, up 0.54% from its opening price on the NSE.
- Who
- Indian Overseas Bank (IOB)
- What
- Reduced overnight MCLR by 5 basis points
- When
- Effective January 15, 2026
- Where
- India
- Why
- Review of MCLR calculations as of January 10, 2026
- Bank
- Indian Overseas Bank (IOB)
- Overnight MCLR
- 7.95%
- Effective Date
- January 15, 2026
- Decision Date
- January 13, 2026
- Other MCLR Tenors
- Unchanged
- One-Month MCLR
- 8.30%
- Three-Month MCLR
- 8.40%
- Six-Month MCLR
- 8.65%
- One-Year MCLR
- 8.80%
- Two-Year MCLR
- 8.80%
- Three-Year MCLR
- 8.85%
- Stock Price
- ₹35.48 (NSE, January 14, 2026)
