Union Bank cuts marginal cost of funds-based lending rate

Mumbai: State-run Union Bank of India on Saturday announced reduction in its marginal cost of funds- based lending rate (MCLR) by up to 15 basis points across various tenors, effective from today, 1 September.

One-year MCLR, to which all lending rates are linked, have been reduced to 8.35 per cent from 8.50 per cent, the bank said in a statement. The bank’s MCLR for overnight tenor has been cut to 7. 95 per cent from 8.10 per cent and one-month tenor to 8 per cent from 8.10 per cent, it added.

It is offering three-month and six-month MCLR at 8.10 per cent and 8.20 per cent respectively.

This is the third rate cut by the city-based lender since June 2019. Earlier this month, the bank also introduced repo linked lending rate (RLLR) for new home loans and vehicle loans. It is offering repo linked home loans of above Rs 30 lakh to Rs 75 lakh at an interest rate of 8.25 per cent.

All vehicle loans linked to repo rate are being given at 8.60 per cent to borrowers. While repo linked home loans give a 35 basis points benefit over the existing home loans, the same for vehicle loans is 40 basis points cheaper than the present such loans. The bank will continue to offer home loan and vehicle loan products linked to MCLR.