Loan News · 1 November 2026 · 2 min read
In short: Punjab National Bank (PNB) has raised its MCLR by 0.10 percentage point across all tenors from 1 November 2026. The one-year MCLR, used for many older home and car loans, is now 8.90%, up from 8.80%. Bank of Maharashtra went the other way, trimming some short-term MCLRs from 31 October.
MCLR (marginal cost of funds based lending rate) is a bank’s internal base rate. Loans linked to it cost the MCLR plus a margin.
PNB’s new MCLR
| Tenor | From 1 October | From 1 November |
|---|---|---|
| Overnight | 8.00% | 8.10% |
| One month | 8.25% | 8.35% |
| Three months | 8.50% | 8.60% |
| Six months | 8.65% | 8.75% |
| One year | 8.80% | 8.90% |
| Three years | 9.10% | 9.20% |
As per Investywise, PNB’s repo-linked lending rate (RLLR) stays at 8.35%. Most new floating-rate home loans are linked to the repo rate, so they are not affected by this change.
Bank of Maharashtra trims short tenors
As per Kalkine, Bank of Maharashtra cut its overnight MCLR to 6.95% from 7.05%, one-month to 7.80% from 7.90%, three-month to 8.35% from 8.40% and six-month to 8.65% from 8.70%, from 31 October. Its one-year MCLR is unchanged at 9.05%.
What it means for you
- Check your loan papers. If your loan is linked to MCLR, the new rate applies only on your next reset date, usually every 6 or 12 months.
- Example: on a ₹30 lakh, 20-year loan, a rise from 9.30% to 9.40% lifts the EMI from about ₹27,573 to ₹27,768, roughly ₹195 a month.
- Old MCLR borrowers can ask the bank about moving to a repo-linked loan. Compare the new rate and any switching fee first.
- Work out your own numbers with our EMI calculator, or compare options on our loans page.
What to watch next
Other banks usually review MCLR at the start of each month, so more changes may follow in early November.
Sources
- PNB: Interest rates on advances linked to MCLR
- Investywise: PNB adjusts MCLR rates effective 1 November 2026
- Kalkine: Bank of Maharashtra cuts MCLR from 31 October 2026
This is a news summary for education, not investment advice. Figures are as reported on or before 1 November 2026; check official sources before making decisions.