Union Bank of India reduces MCLR by 10 bps across all tenors - Check new interest rates

Union Bank of India on Wednesday announced a reduction in its Marginal Cost of Funds- based Lending Rate (MCLR) by 10 points, across all tenors. One year MCLR now stands at 7.60%, down from 7.70%. Revised MCLR will be effective from 11th June 2020. This is the 12th consecutive rate cut announced by the Bank since July 2019.

Revised MCLR, effective from 11th June, 2020 is as under:

Earlier, on May 30, Union Bank of India had announced reduction in External Benchmark Lending Rate (EBLR) by 40 bps to 6.80 per cent taking into consideration the recent change in Repo Rate by RBI. UBI said, "The revised rates will be applicable from June 1, 2020. Effective rates for various schemes will be at EBLR+ Premium/Discount for the product."

Union Bank of India had introduced EBLR based lending rates for all new floating rate loans to Retail and Micro & Small Enterprises segment, in line with RBI guidelines. So, from October 1, 2019, all new floating rate loans to these segments have been linked to RBI Policy Repo Rate. Medium Enterprises are also linked to RBI policy Rate with effect from April 1.

Also, on May 8,  in a relief for the common man, the Union Bank of India had reduced Marginal Cost of Funds-based Lending rate (MCLR) in the range of 5-15 basis points (bps) across all tenors. In a statement, the bank said that its overnight MCLR has been reduced by 15 bps to 7.15 per cent, and one-month MCLR by 10 bps to 7.25 per cent. The three-month and six month MCLRs have been reduced by 5 bps to 7.40 per cent and 7.55 per cent respectively.

The one-year MCLR now stands at 7.70 per cent, down from 7.75 per cent. Revised MCLR will be effective from May 11, 2020. This is the 11th consecutive rate cut announced by the bank since July 2019, it said.