State-run Allahabad Bank on Wednesday said it would reduce its Marginal Cost of Funds-based Lending Rate (MCLR) by 5 basis points (bps) across all tenors with effect from December 1, making home, car and other loans cheaper.

One basis point is one-hundredth of a percentage point. The MCLR for one year tenor would now get reduced by 5 basis points, from 8.3 per cent to 8.25 per cent.

“As a result, interest rates on home, car and other retail loans are set to become one of the finest in the market. Allahabad Bank has always tried to offer its customers various products at an attractive rate, in the process, adding more than 5 million new customers during the last one year,” it said in a statement.

The lender said some new innovative products are also on the anvil.

“Further the ALCO (Asset-Liability Committee) of the bank has also decided to reduce base rate and BPLR of the bank by 10 basis points,” the lender said in a regulatory filing.

The revised base rate and benchmark prime lending rate (BPLR) of the state-run bank will be 9.60 per cent and 13.85 per cent, respectively.