Central Bank of India Further Cuts MCLR by 5 bps Across Tenors

Central Bank of India Further Cuts MCLR by 5 bps Across Tenors

Good News for customers. Central Bank of India has further reduced its Marginal Cost of funds based Lending Rate (MCLR) by 5 basis points across all tenors. The new rates apply in effect from August 15, 2020. Since April 1, the bank has slashed benchmark lending rates by 85 basis points.

Now the state owned bank’s one-year MCLR stands at 7.15 per, Overnight and one-month MCLRs is 6.60 per cent and Three-month MCLR is set at 6.90 per cent.

Latest MCLR rates: Central Bank of India

Tenor MCLR (in %)

Overnight

6.60

One Month

6.60

Three Month

6.90

One Year

7.15

Earlier this month, Union Bank of India had also slashed MCLR by up to 15 basis points across tenors. Its one-year MCLR stood at 7.25 per cent from 7.40 per cent.

Another PSB – Indian Overseas Bank (IOB) also reduced MCLR by 10 basis points. The IOB’s new rates are effective from August 10.

Bank of Maharashtra (BOM) however reduced MCLR by up to 20 basis points for select tenors.

With consistent fall in MCLR rates since April 2020, the lending rates are most competitive ever. Amid pandemic, the RBI has slashed repo rates and reserve rates historically low. The lending rates for new customers will be changed from immediate effect while for existing customers, rates will change according to the loan reset date.

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