Life Insurance Corporation of India (LIC)-owned IDBI Bank reduced
its Marginal Cost
of funds based Lending Rate (MCLR) by5-10 basis points to 8.95% across
various tenors with immediate effect on June
12.
Against one-year MCLR most of the customer loans
such as auto, personal and home loans are priced.
Other
Banks:
The state-run Oriental Bank of Commerce (OBC)
reduced its one year MCLR by 5 basis points to 8.70% on June 10.
Also, Bank of Maharashtra has reduced its MCLR
for one-year tenor loan by 10 basis points to 8.60%.
MCLR:
The marginal
cost of funds based lending rate (MCLR) refers to
the minimum
interest rate of a bank below which it cannot lend, except
in some cases allowed by the RBI. It is an internal benchmark or reference rate
for the bank.
