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Union Bank of India on Saturday said it will reduce its marginal cost of funds-based lending rate (MCLR) by up to 15 basis points across various tenors with effect from September 1, 2019.
Following this rate cut, the benchmark one-year MCLR will come down from 8.50 per cent to 8.35 per cent.
The public sector bank, in a statement, said this is the third rate cut since June 2019. One basis point equals one-hundredth of a percentage point.
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.
Repo-linked rates
Last week, Union Bank launched repo-linked lending rate (RLLR) for new home loan and vehicle loan borrowers to provide better interest rate transmission to its customers.
With the introduction of RLLR, home loans of above ₹ 30 lakhs to ₹ 75 lakhs are available at 8.25 per cent for borrowers with a good credit score.
Also, repo-linked vehicle loans are available at 8.60 per cent to borrowers with a good credit score.
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