A leading lender has reduced its Marginal Cost of Funds-based Lending Rates (MCLR) on select tenures by up to 10 basis points (bps), providing relief to borrowers whose loans are linked to the MCLR regime. One basis point is equal to one-hundredth of a percentage point. The revised MCLR rates came into effect from September 7, 2026. Following the revision, lending rates now range between 7.90% and 8.60%, depending on the loan tenure. Earlier, the rates ranged from 8.00% to 8.65%. The overnight MCLR has been reduced to 7.90% from 8.00%, while the one-month MCLR has also been cut to 7.90% from 8.00%. For the three-month tenure, the rate has been reduced to 8.05% from 8.15%. The six-month MCLR has been cut to 8.25% from 8.30%, while the one-year MCLR has declined to 8.35% from 8.40%. For longer tenures, the two-year MCLR has been reduced to 8.45% from 8.55%, while the three-year MCLR has been lowered to 8.60% from 8.65%. The reduction could provide some relief to eligible borrowers by lowering their interest burden, depending on their loan agreement, reset terms and applicable lending rate.