Karur Vysya Bank has announced a downward revision in its Marginal Cost of Funds Based Lending Rates (MCLR) across most tenures. The new interest rates are set to take effect from May 22, 2026. This adjustment impacts various lending products, with most categories seeing a reduction, aimed at aligning the bank’s internal pricing with evolving market conditions.
Revised Lending Rates
Karur Vysya Bank has officially notified a change in its lending structure through the latest revision of its Marginal Cost of Funds Based Lending Rates (MCLR). These changes, which will be effective starting May 22, 2026, reflect the bank’s updated interest rate framework.
Updated Rate Schedule
The revised rates across different tenures are as follows:
- Overnight MCLR: Reduced to 8.65% from the existing 8.85%.
- One-month MCLR: Reduced to 8.55% from 9.00%.
- Three-month MCLR: Reduced to 8.85% from 9.00%.
- Six-month MCLR: Reduced to 9.00% from 9.15%.
- One-year MCLR: Remains unchanged at 9.15%.
Impact on Borrowers
The reduction across the overnight, one-month, three-month, and six-month tenures signifies a more favorable interest environment for short-term borrowers. The one-year MCLR, which often serves as a benchmark for various retail and corporate loan products, remains steady, ensuring continuity for long-term credit facilities currently linked to this rate.
Source: BSE
