State-run Syndicate Bank has reduced its MCLR rate across tenures by 5 basis points. 1 bps is one-hundredth of a percentage point. The new rates will come into effect from July 15. In a statement, the bank said, the one-year MCLR on which most of the consumer and personal loan products are pegged will stand reduced at 8.6% in comparison to the current 8.65%.

Overnight, one, three and six-month MCLRs have also been lowered by 5 bps each to 8.15 %t, 8.25%, 8.45 % and 8.55%, respectively. Base rate has however been left unchanged at 9.5%. Also, the BPLR or benchmark prime lending rate is not changed and continues to be 13.85%.

On Wednesday, Oriental Bank of Commerce reduced MCLR rate by up to 10 bps for several tenures. The new rates were applicable from July 11, 2019. Also, the MCLR for overnight and one-month loan tenor has been reduced by 10 bps to 8.2% from 8.3% and 8.25% from 8.35% earlier, respectively.Also MCLR for three-month, six-month and one-year tenor loans have been cut by 5 bps to 8.45 per cent, 8.55 per cent and 8.65 per cent, respectively.

SBI also reduced its MCLR rate by 5 bps across all tenures with effect from July 10, 2019. After the latest rate cut by the leading lender which is the third-rate cut in the current financial year, home loan rate have also been slashed lower by 20 bps.

Also for better transmission of key policy rates, SBI has pegged its home loan rates to RBI's repo rate with effect from July 1, 2019.

MCLR or the marginal cost of funds based lending rate, introduced on April 1, 2016, substitutes the previous base rate system and serves as an internal benchmark on the basis of which banks decide on the lending rates.

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