On Tuesday, the public sector bank Oriental Bank of Commerce said it has cut its one-year MCLR or marginal cost of funds based lending rate by 5 basis points to 8.7%. In a regulatory filing, the bank said it has revised the MCLR rate for three tenures and the new rates come into effect from June 11, 2019.

The new MCLR rate for one-month loan tenure will now be 8.35% versus the earlier rate of 8.45%, down 10 bps.

For six months loan tenure, MCLR rate now stand at 8.60% in comparison to the earlier rate of 8.70%.

Bank of Maharashtra has also cut one-year MCLR rate to 8.6%, down 10 basis points from the earlier rate.

The one-year MCLR rate is the internal benchmark of banks against which most of the consumer loans including personal, auto and home loans are pegged.

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