Public sector lender United Bank of India has slashed its MCLR (Marginal Cost of Funds based Lending Rate) by 5 basis points across tenures. The new lending rates issued by the bank would be effective from Thursday.
During its meeting, the bank’s asset-liability management committee revised the tenure-based MCLRs of the bank, said the bank in a regulatory filing.
The one-year marginal cost of funds-based lending rate (MCLR) has been slashed to 8.80 percent from 8.85 percent.
The one-year MCLR refers to the benchmark against which most of the consumer lending, namely auto, personal and home loans, are priced. Besides, the six-month and three-month MCLRs have been reduced to 8.60 percent and 8.50 percent, respectively.
Similarly, the one-month and overnight MCLR rates are also reduced by five basis points (bps) each, notified the bank.
All lenders review their MCLRs every month. One basis point is equivalent to one-hundredth part of a percentage.