On Tuesday, the Union Bank of India informed its decision to cut the marginal cost of funds-based lending rate (MCLR) by up to 20 basis points across various tenures with effect from 1 August 2019.

In a press release the lender informed its decision to lower MCLR on tenures upto 1-year. The 1-year MCLR, which is the basis for most retail loans like home and car loan was reduced to 8.50 percent from the earlier 8.55 percent.

"As a result, interest rates on all loans linked to MCLR stand reduced up to 20 bps with effect from August 1, 2019. This is the second rate cut by our bank since June 2019," Union Bank of India said.

The lender also said that it is taking a cue from the latest measures announced by the Reserve Bank of India and has cut MCLR by up to 20 bps across tenors to support growth of the economy.

"Taking a cue from the latest measures announced by the Reserve Bank of India (RBI) and to support growth of the economy, we have reduced lending rates upto 20 bps across various tenors," it said.