Scheduled commercial banks reduced one-year median MCLR to 8.50%: RBI
New Delhi, June 30
Scheduled commercial banks lowered their benchmark lending rates in June, with the one-year median Marginal Cost of Funds-based Lending Rate falling to 8.50 per cent, as per a statement by the Reserve Bank of India.
The RBI released data on lending and deposit rates of scheduled commercial banks (SCBs), excluding regional rural banks and small finance banks, for June 2026 on Tuesday.
According to the RBI, lending rates on both fresh and outstanding rupee loans recorded a mixed movement across sectors during May.
The weighted average lending rate (WALR) on fresh rupee loans of SCBs stood at 8.51 per cent in May 2026, compared with 8.50 per cent in April 2026. Meanwhile, the WALR on outstanding rupee loans declined marginally to 8.97 per cent from 8.98 per cent over the same period.
At the same time, "one-year median Marginal Cost of Funds based Lending Rate (MCLR) of SCBs stood at 8.50 per cent in June 2026 (8.65 per cent in May 2026)," it said.
The data also indicated a continued shift towards external benchmark-linked lending. The share of External Benchmark-based Lending Rate (EBLR)-linked loans in total outstanding floating-rate rupee loans of SCBs rose to 67.6 per cent at the end of March 2026, up from 65.5 per cent at the end of December 2025.
"MCLR linked loans was 30.2 per cent (32.0 per cent at end-December 2025," the release said.
On the deposit side, the weighted average domestic term deposit rate (WADTDR) on fresh rupee term deposits increased to 5.84 per cent in May 2026, compared with 5.79 per cent in April.
"WADTDR on outstanding rupee term deposits of SCBs moderated to 6.57 per cent in May 2026 from 6.59 per cent in April 2026," the release said.
— ANI
Reader Comments
Good to see banks moving toward EBLR (67.6% now). MCLR system had too much opacity - banks would never reduce rates fast enough when RBI cut repo rate. At least external benchmarks bring some transparency. But deposit rates are still low at 5.84% for fresh deposits - senior citizens are suffering. 😐
The 8.65% to 8.50% drop is marginal, but every basis point counts when you have a ₹30 lakh loan. However, what about those who took loans at MCLR? Banks are reluctant to pass on full benefits. The shift to EBLR should have happened faster - MCLR has always been a one-way street. 📉
As a small business owner, I can tell you that 8.50% MCLR still makes working capital loans expensive. The weighted average lending rate on fresh loans is practically same at 8.51%. Banks need to aggressively cut rates to boost economic activity. RBI and government should push for single-digit rates like pre-pandemic times.
At 8.97% weighted average on outstanding loans, existing borrowers are still paying through the nose. This is one reason why consumer spending is sluggish. Meanwhile, FD rates at 6.57% outstanding are barely beating inflation. The spread between lending and deposit rates is too wide for a growing economy like India. 🤔
Sab moh maya hai! 😅 Rates drop by 15 basis points but my bank still hasn't reduced my home loan EMI. They increase overnight but take months to reduce. At least RBI data is transparent - 67.6
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