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.
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.