You are here: Home » Finance » News » Banks
Business Standard

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

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

Press Trust of India  |  New Delhi 

Union Bank of India
Union Bank of India

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

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

Overnight 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 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.

First Published: Tue, December 10 2019. 20:20 IST
RECOMMENDED FOR YOU