Mumbai, October 17, 2026: South Indian Bank Ltd. has announced a revision in its Marginal Cost of Funds Based Lending Rates (MCLR) across five loan tenures, with the updated rates set to take effect from October 20, 2026. The revision covers overnight, one-month, three-month, six-month, and one-year tenures.
In a regulatory filing dated October 17, 2026, the bank informed the stock exchanges about the revised lending rates in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The bank has also made the revised rates available on its official website.
South Indian Bank’s Revised MCLR Rates
According to the disclosure, the revised MCLR rates across the five tenures are as follows: Loan Tenure Revised MCLR Rate Overnight 8.20% One Month 8.55% Three Months 9.25% Six Months 9.30% One Year 9.50%
The one-year MCLR stands at 9.50%, the highest among the five listed tenures, while the overnight MCLR is 8.20%, the lowest. The revised rates will become effective on October 20, 2026.
What Is MCLR, and Why Does It Matter?
Marginal Cost of Funds Based Lending Rate (MCLR) is an internal benchmark used by banks to determine the interest rates on certain loans. Introduced by the Reserve Bank of India (RBI), the framework links lending rates to banks’ marginal cost of funds and other relevant components.
MCLR is designed to improve the transparency of lending rates and help ensure that changes in banks’ funding costs are reflected in applicable loan pricing.
Banks typically maintain different MCLR rates for different tenures because their funding costs and interest-rate risks can vary depending on the borrowing period.
How Will the Revision Affect Borrowers?
The impact of South Indian Bank’s revised MCLR rates will depend on the type of loan, the benchmark specified in the loan agreement, and the applicable interest-rate reset date.
Existing borrowers: Customers whose loans are linked to MCLR may see a change in their applicable interest rates when their loans reach the relevant reset date. However, the revised benchmark does not necessarily mean that every existing borrower will experience an immediate change in their EMI.
Home loan borrowers: For eligible home loans linked to MCLR, a benchmark revision may affect the interest rate, monthly installment, or remaining repayment period, depending on the loan’s terms and the bank’s applicable policies.
Personal and other loans: The effect on personal loans, business loans, or other credit facilities will depend on whether the specific loan is linked to MCLR and on the conditions stated in the loan agreement.
New borrowers: Customers considering a loan from South Indian Bank should check the applicable lending benchmark, the offered interest rate, processing charges, and repayment conditions before making a decision.
Importantly, the disclosed MCLR figures are benchmark rates, not necessarily the final interest rates charged to individual customers. The actual rate may vary according to the loan product and applicable terms.
Regulatory Disclosure and Transparency
South Indian Bank made the announcement under Regulation 30 of the SEBI Listing Regulations, which governs the disclosure of specified material information by listed companies.
The disclosure provides investors, borrowers, and other stakeholders with information about the bank’s updated lending benchmarks. The revised rates have also been published on the bank’s official website.
The announcement comes as borrowers continue to monitor lending rates and assess how changes in banking benchmarks may influence their borrowing costs.
What Should Customers Do Next?
Customers with loans linked to MCLR should review their loan agreements and check the benchmark and reset date applicable to their accounts. They may also contact their bank branch or relationship manager to determine whether the revised rates will affect their existing loan.
Borrowers should confirm their current applicable interest rate, next reset date, outstanding principal, and EMI details before assuming that the revision will change their monthly repayment obligations.
Conclusion
South Indian Bank’s revised MCLR rates will take effect on October 20, 2026, covering five tenures from overnight to one year. The rates range from 8.20% for overnight loans to 9.50% for one-year loans.
The impact on individual borrowers will depend on their loan agreements, applicable benchmarks, and reset schedules. Customers are advised to consult the bank’s official disclosure and verify their loan-specific details to understand the implications of the revision.
Key Details at a Glance
- Bank: South Indian Bank Ltd.
- Announcement Date: October 17, 2026
- Effective Date: October 20, 2026
- Benchmark: Marginal Cost of Funds Based Lending Rate (MCLR)
- Lowest Listed Rate: 8.20% for overnight tenure
- Highest Listed Rate: 9.50% for one-year tenure
- Regulatory Reference: Regulation 30 of the SEBI Listing Regulations
- Borrower Impact: Depends on the loan benchmark, agreement, and reset date.
Note: The revised rates listed above are based on the information provided in the regulatory disclosure summary. Borrowers should consult South Indian Bank’s official website or contact the bank directly for confirmation of the applicable rates and loan-specific terms.
