New Delhi: Despite the Reserve Bank of India keeping the Repo Rate unchanged in its latest review of the monetary policy, the commercial banks seem to begin competition among themselves in reducing the lending rates for the borrowers of home and other loans.
The latest banks to reduce MCLR rates are Bank of Baroda, Union Bank and UCO Bank which have lowered the MCLR rates in the range of 5-20 percent. Earlier this week, SBI, Bank of India and HDFC Bank has announced cutting down the rates.
Bank of Baroda has cut the one year MCLR by 5 basis points from December 12. The new one year MCLR will become 8.25 percent. The overnight and one month MCLR rates have been cut by 20 basis points. These will become 7.65 percent from 7.85 percent. The three month and six month MCLR rates have been cut by 10 basis points. These will become 7.80 percent from 7.9 percent.
Union Bank of India has lowered the one year MCLR rates to 8.20 percent from 8.25 percent and cut MCLR by 5-10 basis points across all tenors.
UCO Bank has cut the MCLR by 10 basis points across tenors with. The new one-year MCLR has now become 8.30 percent, down from 8.40 percent.
In the beginning of this week, State-run SBI and Bank of India had cut their MCLR rates in the range of 10-20 basis points while private sector lender HDFC has reduced MCLR by up to 15 basis points.
The Bank of India cut its one-year MCLR lending rates by up to 20 basis points for various tenors.