State-run Dena Bank today said it has reduced marginal cost based lending rate (MCLR) by 10 basis points to 9.30 per cent from 9.40 per cent for 1 year tenor.
The new rates will be applicable from December 1, it said.
The lender also fixed its overnight period minimum lending rate or MCLR at 9.10 per cent.
For the one month period, the interest rate has been set at 9.15 per cent.
The interest on loans for three months period has been fixed at 9.20 per cent while for six months period the rate has been fixed at 9.25.
Private sector Kotak Mahindra Bank too reduced the MCLR rate by upto 0.45 per cent.
The bank has reduced MCLR by 0.20 per cent to 9 per cent from 9.20 per cent for 1-year tenor, Kotak Mahindra Bank said in a statement.
However, MCLR for three-month period has been reduced by 0.45 percentage points to 8.40 per cent while lending rate for 2 and 3 years has been brought down to 9 per cent from 9.25 per cent.
Meanwhile, DHFL CEO Harshil Mehta said the company has always been at the forefront when it comes to passing the benefit of the rate cut to end-customer.
"We are closely watching the situation and will promptly pass on the benefit of exemption of MCLR to end customer as part of our commitment to transform lives of Lower Middle Income segment by enabling access to home ownership," he said.