State-run Union Bank of India on Saturday announced reduction in its external benchmark lending rate (EBLR) by 40 bps to 6.80 per cent for all new floating rate loans to personal, retail and Micro & Small Enterprises segment, in line with RBI’s repo rate from June 1.

The new rates will come into effective from June 1.

“Effective rates for various schemes shall be at EBLR+ Premium/Discount for the product,” said the release.

“Thus, with effect from October 1, 2019, all new floating rate loans to these segments are linked to RBI Policy Repo Rate. Medium Enterprises are also linked to RBI policy Rate with effect from April 01, 2020,” the statement added.

The latest cuts come after RBI, last week, had reduced repo rate by 40 basis points to 4 per cent from 4.40 per cent.

On Friday, another state-run, Uco Bank slashed its repo based lending rate-UCO Float by 0.40 per cent to 6.90 per cent from 7.30 per cent, effective from May 27.

Similarly, public sector bank, Bank of India (BOI), announced a 40 basis points cut in its external benchmark lending rate (EBLR) which is linked to RBI”s repo rate from June 1. The bank”s new EBLR has been revised to 6.85 per cent per annum.