Union Bank To Cut MCLR By 5-20 Bps From Aug 1

Union Bank of India on Tuesday said it will reduce its Marginal Cost of funds-based Lending Rate (MCLR) by 5-20 basis points (bps) across various tenors, with effect from August 1.

All rupee loans sanctioned and credit limits renewed by banks with effect from April 1, 2016, are priced with reference to MCLR, which is the internal benchmark for such purposes. One basis point equals one-hundredth of a percentage point.

The public sector bank has reduced both overnight and one-month MCLR to 8.10 per cent from 8.25 per cent and 8.30 per cent, respectively.

Three-months and six-months MCLR has been reduced to 8.25 per cent (8.35 per cent now) and 8.35 per cent (8.45 per cent).

The benchmark one-year MCLR to which most loans are linked will come down to 8.50 per cent from 8.55 per cent.

“This is the second rate cut by our bank since June 2019. Taking a cue from the latest measures announced by the Reserve Bank of India (RBI) and to support growth of the economy, we have reduced lending rates by 5-20 bps across various tenors,” the bank said in a statement.