Union Bank cuts MCLR 5-10 bps across tenors; one-year rate revised to 8.2%

Union Bank of India on Tuesday said it has cut one-year MCLR rate to 8.20 per cent, down 0.05 percentage point.

Union Bank of India has reduced marginal cost of funds-based lending rate (MCLR) by 5-10 basis points (bps) across all tenors, it said in a release.

One-year MCLR now stands at 8.20 per cent, down from 8.25 per cent, the public sector bank said.

Overnight MCLR has been reduced by 10 bps to 7.75 per cent.

The one-month to six-month tenor MCLRs have been cut in the range of 7.80 to 8.05 per cent, it said.

Revised MCLR rates will be effective from December 11, the bank said.

The Reserve Bank in its bi-monthly monetary policy review last week had kept the key repo rate unchanged at 5.15 per cent.

Following this, several public sector banks including the largest lender SBI, followed by Bank of Baroda, Bank of India, among others, announced reduction in MCLR which will bring down the cost of loans such as auto and home for consumers.

One-year MCLR is the benchmark to price most of the consumer loans.