Central Bank of India reduces MCLR by 5 basis points on various tenor

MCLR on 1-year tenor stands at 7.10% from earlier 7.15%.

Sep 15, 2020 08:09 IST India Infoline News Service

State-owned Central Bank of India has trimmed its marginal cost of funds-based lending rates (MCLR) by 5 basis points across all tenors effect from Tuesday onward.

MCLR on 1-year tenor stands at 7.10% from earlier 7.15%.

Meanwhile, MCLR of 6.55% is imposed on overnight and one-month tenor compared to previous 6.60%.

Further, the three-month and six-month tenor has witnessed MCLR of 6.85% and 7% respectively.

MCLR is the benchmark lending rate for term loans like personal loans, home loans, corporate loans and vehicle loans. Banks cannot lend below this benchmark. Thereby, when MCLR is reduced, EMIs are also expected to follow the same, however, depending upon bank-to-bank.

On Tuesday, Central Bank of India stock will remain in focus. In the previous closing, the bank's stock stood at Rs16.35 per piece down 0.91% on Sensex. 

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