Bank of India announced critical updates to its lending rates, effective April 1, 2026. The Marginal Cost of Funds based Lending Rate (MCLR) and Repo Based Lending Rate (RBLR) remain unchanged across all tenors. However, the institution confirmed adjustments to the Fixed Rate Spread (FRS) for various loan tenors and a reduction in the Base Rate from 10% to 9.50% per annum until June 30, 2026.
Lending Rate Review Announcement
In a filing dated March 30, 2026, Bank of India confirmed adjustments to key benchmark lending rates applicable from April 1, 2026. While the Marginal Cost of Fund based Lending Rate (MCLR) and the Repo Based Lending Rate (RBLR) have seen No Change, the institution has updated its Fixed Rate Spread (FRS) and Base Rate structure.
Current MCLR Structure (Effective 01.04.2026)
The existing MCLR matrix is confirmed to be maintained across all periods:
- Overnight MCLR: 7.70%
- 1 Month MCLR: 8.05%
- 3 Month MCLR: 8.20%
- 6 Month MCLR: 8.60%
- 1 Year MCLR: 8.75%
- 3 Year MCLR: 8.90%
Changes to Fixed Rate Spreads (FRS)
The Fixed Rate Spread structure underwent changes effective 01.04.2026. The rates are quoted as a premium over the Credit Risk Premium (CRP) or Tenor Premium (TP):
| Tenor | Rate |
|---|---|
| 1Yr | 8.75% + CRP |
| 2Yr | 9.25% + CRP |
| 3Yr | 9.35% + CRP |
| 4Yr | 9.75% + CRP |
| Above 5 Yr | 8.75% + Tenor Premium + CRP |
Base Rate Adjustment
A notable change affects the institution’s Base Rate. It has been revised downward from 10% to 9.50% per annum. This revised Base Rate is scheduled to be applicable for the period commencing April 1, 2026, through June 30, 2026.
Source: BSE
