One-year MCLR, to which majority of the consumer loans are tied, now stands at 7.40 per cent against 7.60 per cent earlier.
This is the thirteenth consecutive rate cut by the lender since July last year. (Photo: UB)
Union Bank of India has cut its marginal cost of funds-based lending rate (MCLR) by 20 basis points across tenors. The rate cut is effective from Saturday (July 11).
The move comes amid similar steps taken by the peers after two rate cuts by the Reserve Bank of India (RBI) in order to help the economic growth rise in the aftermath of the COVID-19 pandemic. The RBI has cut its key rates by 115 bps since March.
One-year MCLR, to which majority of the consumer loans are tied, now stands at 7.40 per cent against 7.60 per cent earlier.
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Three-month and six-month MCLRs have been cut to 7.10 per cent and 7.25 per cent, respectively.
This is the thirteenth consecutive rate cut by the lender since July last year.
The country’s largest lender State Bank of India also announced deduction in its MCLR by 5-10 bps on Wednesday. Its new rate came into effect from today (Friday) onwards.
Another state-run Indian Overseas Bank (IOB) has cut its MCLR by up to 25 bps across tenors.
Earlier this week, Canara Bank and Bank of Maharashtra (BoM) also reduced their MCLRs by 10 bps and 20 bps, respectively across all tenors.
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