UCO Bank Lowers Lending Rates
UCO Bank, a government-owned bank, has cut its marginal cost of funds-based lending rate (MCLR) by 10 basis points for all loan tenures, effective from June 10, 2025.
This cut means that loans linked to MCLR, such as home and personal loans, could become cheaper for borrowers.
Updated MCLR Rates
UCO Bank has reduced its overnight MCLR rate by 0.10%, from 8.25% to 8.15%. The 1-month MCLR rate has fallen from 8.45% to 8.35%, and the 3-month MCLR is now 8.50%, down from 8.60%.
The 6-month MCLR has dropped from 8.90% to 8.80%, while the 1-year MCLR has decreased from 9.10% to 9.00%.
PNB Cuts RLLR
Punjab National Bank (PNB), another government bank, has lowered its Repo Linked Lending Rate (RLLR) after the RBI cut the repo rate.
PNB’s RLLR is now 8.35%, reduced from 8.85%. However, PNB’s MCLR and base rates remain unchanged. These new rates start from June 9, 2025.
Bank of India Lowers RBLR
Similarly, Bank of India has cut its Repo Based Lending Rate (RBLR) due to the repo rate reduction. Effective June 6, the RBLR decreased from 8.85% to 8.35%.
Private Bank Cuts MCLR
Karur Vysya Bank, a private sector bank, also reduced its MCLR. Its 6-month MCLR fell from 9.9% to 9.8%, and the 1-year MCLR dropped from 10% to 9.8%. These rates are effective from June 7.
RBI’s Repo Rate Cuts This Year
This year, the Reserve Bank of India (RBI) has cut the repo rate by a total of 1%. The most recent cut was 0.5%, lowering the repo rate to 5.5%, which was more than expected.
Earlier, RBI had reduced the rate by 0.25% each during its policy reviews in February and April. The rate cuts began again in February, the first since May 2020.
