Mumbai: Leading public sector bank in the country, Union Bank of India has increased its Marginal Costs of Funds-Based Lending Rates (MCLR). After the hike the equated monthly instalments (EMIs) of all retail loans including car, personal and home will go up.
MCLR is the minimum rate of interest banks are allowed to give out loans to its customers. It is a benchmark interest rate and it dictates the lower limit of the interest rate for a loan.
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Union Bank of India has raised its MCLR interest rates by 5 basis points. The interest rates will remain unchanged until January 10, 2023. In addition, the bank revised its external benchmark lending rates, which are linked to the repo rate.
The 3-year MCLR rate is 8.60%, while the rates for the 2-year and 1-year tenures will be 8.45% and 8.25%, respectively. The lender is providing an 8.05% MCLR for six months, 7.85% for 3 months, 7.65% for 1 month, and 7.50% for overnight tenure. The External Benchmark Lending Rate (EBLR) has been set at 9.05%.
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