Union Bank, PNB HFL Reduce MCLR, EMIs to Go Down

Union Bank, PNB HFL Reduce MCLR, EMIs to Go Down

Following SBI, Union Bank of India and PNB Housing Finance Ltd have also reduced their MCLR rates across the tenors. The Home Loan EMI of existing borrowers would change as per their respective reset dates.

Union Bank Slashes MCLR by 5-15 bps

The state-owned Union Bank of India on Friday reduced its Marginal Cost of Funds-based Lending rate (MCLR) by 5 to 15 basis points across tenors.

The new rates are effective from May 11, 2020:

MCLR Tenor Revised Rate (%) Previous Rate (%)

Overnight

7.15

7.30

One-month 

7.25

7.35

three-month

7.40

7.45

six month

7.55

7.60

one-year MCLR

7.70 per cent

7.75 per cent

Earlier this week the State Bank of India had reduced its MCLR by 15 bps across all tenors with effect from May 10. The UBI has followed the suite. Since July 2019, it is eleventh consecutive rate cut by the Union Bank.

PNB Housing Finance Slashes MCLR by 15 bps

Leading NBFC PNB Housing Finance Limited has also reduced its retail lending rates, for home loan and loan against property by 15 bps. The new rates are effective from May 9, 2020.

The decision is directed to offer support and financial relief to borrowers in the wake of Covid-19 lockdown, said the official statement from the Housing Finance Company. All existing retail customers who have availed PNB HFL loan before February 2020 on floating rates will be eligible for new rate.

The reduction in lending rates followed by RBI’s policy rate cut of 75 bps and repayment moratorium, these steps are taken to ease the financial crunch of people amid COVID 19 Lockdown.

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