The Marginal Cost of Funds Based Lending Rate (MCLR) has been revised upward across all loan tenors by a major public-sector lender. As per a regulatory filing, the lender has increased its MCLR by 5 basis points (bps) for all maturities, with the revised rates coming into effect from May 12, 2026. Another large public-sector lender, however, has chosen to keep its MCLR unchanged during the same period, according to its own regulatory disclosure.Under the latest revision, the overnight MCLR has been raised from 7.85% to 7.90%, while the one-month MCLR has increased from 7.90% to 7.95%. The one-year MCLR, which is particularly significant as it serves as the benchmark for many retail loans such as home loans, auto loans, and personal loans, has been increased from 8.70% to 8.75%. Borrowers with MCLR-linked floating-rate loans may experience an increase in their loan interest rates, depending on their reset date and the specific terms outlined in their loan agreements. The lender has clarified on its official website that the revised MCLR rates will apply only to new loans or advances sanctioned or first disbursed on or after May 12, 2026. Additionally, the new rates will also be applicable to existing credit facilities that are renewed, reviewed, reset, or switched over to MCLR-linked interest rates, wherever such a switchover is permitted at the borrower’s discretion, on or after the same effective date.