UCO Bank Cuts Lending Rates
UCO Bank, a government-owned bank, has reduced its marginal cost of funds-based lending rate (MCLR) by 10 basis points across all loan durations, starting from June 10, 2025.
This reduction means that loans linked to MCLR, like home and personal loans, could become cheaper for borrowers.
Updated MCLR Rates
UCO Bank has lowered its overnight MCLR rate by 0.10%, bringing it down from 8.25% to 8.15%. The 1-month MCLR has been reduced from 8.45% to 8.35%, while the 3-month MCLR is now 8.50%, down from 8.60%.
The 6-month MCLR has dropped from 8.90% to 8.80%. The 1-year MCLR has also been cut from 9.10% to 9.00%.
PNB Reduces RLLR
Punjab National Bank (PNB), another government bank, has cut its Repo Linked Lending Rate (RLLR) following the RBI’s repo rate cut.
The RLLR has been brought down from 8.85% to 8.35%. However, there is no change in PNB’s MCLR or base rates. These new rates will be effective from June 9, 2025.
BOI Also Lowers RBLR
Similarly, Bank of India has revised its Repo Based Lending Rate (RBLR) due to the repo rate cut. Effective June 6, the RBLR has been reduced from 8.85% to 8.35%.
Private Bank Offers Relief
Private sector bank Karur Vysya Bank has also announced a cut in its MCLR. The bank has reduced its 6-month MCLR from 9.9% to 9.8%, and its 1-year MCLR from 10% to 9.8%. These new rates are applicable from June 7.
RBI Has Cut Repo Rate by 1% This Year
So far this year, the Reserve Bank of India (RBI) has lowered the repo rate by a total of 1%. The latest cut of 0.5% brought the repo rate down to 5.5%, which was more than expected.
Earlier, the RBI had reduced the rate by 0.25% each in its February and April policy reviews. The central bank began cutting the rate again in February, the first time since May 2020.
