With this hike, the bank’s overnight rate now stands at 6.80 per cent, while its one-month, three-month and six-month rates now stand at 6.95 per cent, 7.20 per cent and 7.35 per cent respectively. The one-year MCLR, two-year MCLR and three-year MCLR are 7.55 per cent, 7.60 per cent and 7.60 per cent respectively.
Latest Union Bank Of India MCLR
Source: Bank’s website
The increase in MCLR rate will result in higher loan interest rates for both new and existing borrowers.
A benchmark interest rate, known as the “marginal cost of lending rate” or “MCLR”, is the minimum interest rate at which banks can lend to their customers. It establishes the minimum interest rate that can be charged on the loan.
On July 1, 2022, the bank base rate was revised to 8.40 per cent, and with effect from June 11, 2022, the external benchmark-based lending rate now stands at 7.70 per cent.