Tuesday , October 19 2021

Union Bank of India cuts EBLR by 0.40%, loans can be cheap

New Delhi:  Union Bank of India has announced a reduction of 0.40 percent in the external benchmark lending rate (EBLR). After this, the bank’s EBLR has come down from 7.20 per cent to 6.80 per cent. The new rates of the bank have come into effect from today i.e. 1st June.

 

Let us know that Union Bank of India has made these cuts after the recent change in the repo rate by RBI. The effective rates for various schemes will be EBLR plus premium / discount for the product.

 

Union Bank
of India made these changes as per RBI guidelines, EBLR based interest rates were offered for all new rate loans to retail as well as micro and small enterprises segments. Only after this, from October 1, 2019, all new rate loans have been added to the repo rate of RBI. Now recently, Medium Enterprises was also added to the RBI policy rate from 1 April.

 

RBI had reduced the repo rate-reverse repo rate.
Let us know that recently the RBI had cut policy rates by 0.40 percent. RBI had reduced the repo rate from 4.40 per cent to 4 per cent and the reverse repo rate from 3.75 per cent to 3.35 per cent. After this it was hoped that banks can also make their loan rates cheaper. In this episode, Bank of Baroda has also announced to reduce its MCLR (Marginal Cost of Landing Rates) by 0.25%.

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