The Union Bank of India will reduce the marginal cost of funds-based lending rate (MCLR) by up to 5 basis points across tenors.
The reduced MCLR would come into effect on Friday. This is the 15th consecutive rate cut announced by it since July 2019, the bank said in a statement.
The MCLR, the minimum lending rate below which a bank is not permitted to lend, is an internal reference rate for banks to determine the interest they can levy on loans.
Post the reduction, the one year MCLR will stand at 7.20 per cent, down from 7.25 per cent.
The overnight MCLR and one-month MCLR will stand at 6.75 per cent.