Categories: Business

Union bank cuts MCLR by 15 base points

Photo: FILE

Union bank cuts MCLR

new Delhi. Union Bank has cut the Marginal cost of funds based lending rate – MCLR by 0.15 percent. The new rate will be applicable from August 11. Union Bank said in a release that it has reduced the one-year MCLR from 7.40 percent to 7.25 percent. Most long-term loans, such as home loan rates, are decided on this basis. The MCLR for one day loan will be 6.80 percent while for three months and six months it will be 6.95 percent and 7.10 percent respectively. According to the statement, the standard rate has been reduced for the 14th consecutive time since July 2019.

At the same time, IOB (Indian Overseas Bank), another public sector bank, has also reduced the MCLR by 0.10 percent for all periods. In a notification to the stock market last week, the IOB said that the MCLR has been reduced from 7.75 percent to 7.65 percent for a year. The new rates come into effect from Monday. Apart from this, Pune's Bank of Maharashtra (BoM) has also cut the MCLR by 0.20 percent since August 7.

During the last one month, many banks have cut their MCLR. This includes SBI, HDFC Bank and Union Bank. In the second week of July last month, State Bank of India cut MCLR by 5 to 10 basis points for a short period. Along with this, HDFC Bank had reduced the MCLR by 20 basis points. MCLR declined to 7.45 per cent for one year after the cut. At the same time, Union Bank also cut MCLR by 20 basis points last month.

This post was published on August 10, 2020 6:30 pm

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