5 Major Banks Offering Lowest Loan Rates In June 2025: SBI Vs HDFC Bank Vs Canara Bank Vs BoB Vs PNB Compared

Which bank is offering lowest interest in June 2025? Here's a comparative interest rate analysis of 5 banks --SBI Vs HDFC Bank Vs Canara Bank Vs BoB Vs PNB.

Several major banks have revised their Marginal Cost of Funds-based Lending Rates (MCLR) in June 2025. Banks revise their MCLR due to changes in their cost of funds and the requirement to conform to the RBI's monetary policy. 

What is MCLR?

The Reserve Bank of India introduced the MCLR methodology for commercial banks to set lending rates. It is a benchmark rate used by banks to determine interest rates on various floating-rate loans like home loans, personal loans and automobile loans. According to RBI regulations, banks must set up MCLR which serve as internal benchmark lending rates. It should be revised monthly by considering factors like repo rate and other borrowing rates. 

Here's the MCLR rate of top banks in June 2025. 

SBI June 2025 Loan Rate

State Bank of India has kept its lending rates unchanged on all tenures. SBI's overnight and one-month MCLR remain at 8.20 percent. The three-month MCLR stands at 8.55 percent and the six-month tenure remains at 8.90 percent. The MCLR for one-year tenure is 9 percent. The MCLR for two years tenures is 9.05 percent and that of three years is 9.10 percent. The tenor-wise MCLR is effective from June 15, 2025.

Punjab National Bank June 2025 Loan Rate

Punjab National Bank has kept the rates unchanged. Its overnight MCLR is 8.25 percent and one-month MCLR is 8.40 percent. The three-month MCLR stands at 8.60 percent and the six-month MCLR stands at 8.80 percent. The one-year MCLR is 8.95 percent and the three-year MCLR is 9.25 percent. The MCLR is effective June 1, 2025.

Canara Bank June 2025 Loan Rate

Canara Bank has lowered its lending rates by 20 bps. Its overnight MCLR is reduced to 8 percent from 8.20 percent. The one-month MCLR has dropped from 8.25 percent to 8.05 percent. The three-month MCLR is now 8.25 percent and the six-month MCLR has been lowered to 8.60 percent from 8.80 percent. The one-year MCLR has been reduced from 8.80 percent to 9 percent. The two-year MCLR stands at 8.95 percent and the three years MCLR stands at 9 percent. The new rates are effective from June 12, 2025.

HDFC Bank June 2025 Loan Rate

HDFC Bank has reduced its overnight and one-month MCLR tenures by 10 bps to 8.9 percent from 9 percent earlier. The three-month MCLR has been cut from 9.05 percent to 8.95 percent and the six-month MCLR has been reduced from 9.15 percent to 9.05 percent. The one-year MCLR rates have been reduced from 9.15 percent to 9.05 percent. The two-year MCLR is reduced from 9.20 percent to 9.10 percent and the three-year MCLR has been reduced from 9.20 percent to 9.10 percent.

Bank of Baroda June 2025 Loan Rate

Bank of Baroda has maintained its overnight MCLR at 8.15 percent, while it has reduced its one-month MCLR to 8.30 percent from 8.35 percent earlier. The three-month MCLR is now 8.50% from earlier 8.55 percent and the six-month MCLR is 8.75 percent from earlier 8.80 percent. The one-year MCLR is reduced to 8.9 percent from 8.95 percent. These rates are effective from June 12, 2025.