The Indian Overseas Bank headquarters in Chennai
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RAGHUNATHAN SR
Indian Overseas Bank (IOB) on Friday announced a reduction in its lending rates effective December 15, 2025, to pass on the Repo cut done by RBI in the recent MPC.
The bank has reduced its External Benchmark Lending Rate (EBLR) – specifically the Repo Linked Lending Rate (RLLR) by 25 basis points from 8.35 per cent to 8.10 per cent, thereby, fully passing the policy rate cut to its customers.
Additionally, the Bank’s Asset Liability Management Committee (ALCO) has approved a reduction of 5 basis points reduction in the Marginal Cost of Funds Based Lending Rate (MCLR) across tenors from three months to three years.
“These revisions will lower Equated Monthly Instalments (EMIs) for both existing and new borrowers whose loans are linked to these benchmarks. Retail customers seeking home, vehicle, and personal loans will benefit from enhanced affordability. MSMEs and corporate borrowers will also experience a reduction in their cost of funds, aiding working capital requirements and supporting business growth,” the public sector bank said in a statement.
Published on December 12, 2025
