Union Bank of India Cuts MCLR For All Tenors

New Delhi, February 11:  A week after the Reserve Bank of India's (RBI) kept key rates unchanged in its bi-monthly monetary policy review, the country’s government-owned lender, Union Bank of India’s rate cut in Marginal Cost of funds-based Lending Rates (MCLR) is the latest to come into effect from February 11, 2020 onward.

Union Bank of India has reduced the 3-month MCLR by 5 bps to 7.80 per cent from 7.85 per cent. Its one year MCLR capital stands at 8.10 per cent. This is the eighth consecutive rate cut announced by the bank since July 2019. Recently, Union Bank of India reduced its home loan interest rates for different categories of borrowers by upto 30 bps, from 8.20 per cent to 7.90 per cent.

Here’s Union Bank of India’s latest MCLR rates:

RBI’s current repo rate stands at 5.15 per cent and reverse repo rate at 4.90 per cent. (100 bps = 1 per cent). 

In the aftermath of RBI’s unchanged rates, State Bank of India (SBI) has also reduced the MCLR by 5 bps across all tenors. SBI’s one year MCLR comes down to 7.85 per cent per annum from 7.90 per cent per annum.