Latest loan rates in June 2025: SBI vs HDFC vs Canara vs BoB vs PNB -which bank offers the lowest rates?

Several major banks have revised their marginal cost of funds-based lending rates in June 2025. Banks such as HDFC Bank, Canara Bank, and Bank of Baroda have announced rate reductions across different tenures, providing borrowers with some relief, while other banks like State Bank of India (SBI) and Punjab National Bank (PNB) have kept their MCLRs unchanged.

What is MCLR?

The marginal cost of funds-based lending rate, or MCLR, is a benchmark rate used by banks to determine interest rates on various floating-rate loans, including home loans, personal loans, and automobile loans. A decrease in MCLR translates to a potential drop in equated monthly instalments (EMIs) of loans or a shorter loan tenure, benefiting borrowers in the long term.

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SBI lending rates

SBI, the country’s largest bank, has kept its lending rates unchanged on all tenures. SBI’s overnight and one-month MCLR remain at 8.20%; the three-month MCLR stands at 8.55%; for six-month tenure, MCLR remains at 8.90%; for one-year tenure, which is typically linked to auto loans, it is 9%, the same as earlier. The bank has kept its MCLR for the two- and three-year tenures at 9.05% and 9.10%, respectively.

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Bank of Baroda has maintained its overnight MCLR at 8.15%, while it has reduced its one-month MCLR to 8.30% from 8.35% earlier; the three-month MCLR to 8.50% from 8.55%; and the six-month MCLR to 8.75% from 8.80%. The bank has also revised its one-year MCLR to 8.9% from 8.95%. These rates are effective from June 12, 2025.

Canara Bank latest lending rates

Public sector lender Canara Bank has lowered its lending rates by 20 bps. After the revision, its overnight MCLR is reduced to 8% from 8.20% earlier, and its one-month MCLR dropped from 8.25% to 8.05%. The bank’s three-month MCLR is now 8.25%, down from 8.45%, while the six-month MCLR has been lowered to 8.60% from 8.80%. The one-year MCLR has been reduced from 8.80% to 9.00%. Similarly, the two-year and three-year MCLR have been brought down by 20 basis points each, now standing at 8.95% and 9%, respectively. The new rates are effective from June 12, 2025.

Punjab National Bank lending rates

Punjab National Bank has kept the rates unchanged. Its overnight MCLR is 8.25%, and its one-month MCLR is 8.40%. The three-month MCLR now stands at 8.60%, and the six-month MCLR stands at 8.80%. The one-year MCLR is 8.95%, and the three-year MCLR is 9.25%. The bank has revised its marginal cost of funds-based lending rates (MCLR) effective June 1, 2025.

HDFC Bank lending rates

Private sector lender HDFC Bank has reduced its overnight and one-month MCLR tenures by 10 bps to 8.9% from 9% earlier. The three-month MCLR has been cut from 9.05% to 8.95%, down by 10 bps, and the six-month MCLR has been reduced from 9.15% to 9.05%. The one-year MCLR rates have been reduced from 9.15% to 9.05%, down by 10 bps. The two-year MCLR is reduced by 10 bps from 9.20% to 9.10%. The three-year MCLR has been reduced from 9.20% to 9.10%.