Union Bank Cuts MCLR by 20 bps; Lower Home Loan EMIs from July 11

Good News for Home Loan Customers. Now Union Bank of India has announced a steep cut of 20 basis points in its marginal cost of funds-based lending rate (MCLR) across tenors. The new interest rates will be applicable from July 11, 2020.

The MCLR rates are internal benchmark rates and are set according to the reset tenor of the loan. So, those customers who will have reset date in July 2020, will enjoy lowers EMIs from this month.

The revised one-year MCLR is 7.40% while the three-month and six-month MCLRs are 7.10% and 7.25%, respectively.

Here is the snapshot of effective MCLR rates starting July 11, 2020.

The bank had also revised its EBLR at 6.80 w.e.f. June 1, 2020. This is the thirteenth consecutive rate cut by Union Bank in last 1 year.

Since March 2020, RBI has slashed benchmark lending rate by 115 bps which has resulted in constant rate cuts by lenders across the ecosystem. Also this week, State Bank of India reduced its MCLR by 5-10 basis points (bps) for shorter tenor loans. Others banks that recently slashed there MCLR include HDFC Bank, Indian Overseas Bank (IOB), Canara Bank and Bank of Maharashtra (BoM).

The IOB has cut down its MCLR by up to 25 bps across tenors. Canara Bank and Bank of Maharashtra reduced their MCLRs by 10 bps and 20 bps, respectively while the HDFC Bank cut down its MCLR by 20 bps.