New Delhi: The public sector Union Bank of India has cut the external benchmark landing rate (EBLR) by 40 basis points. Now the bank’s EBLR has come down to 6.80 per cent. The revised rates will be effective from 1 June 2020. The effective rates for various schemes will be EBLR + Premium / Discount for that product. With this decision of the bank, it will become cheaper to take home loan, auto loan, personal loan, MSME loan etc.
According to information received from Union Bank of India, it has implemented EBLR based landing rates in the retail to micro and small industries segment, following RBI guidelines. In this way all new floating rate loans in these segments became linked to RBI policy repo rate with effect from 01.10.2019. Medium-sized industries have been linked to RBI policy rates since 01.04.2020.
Earlier, Bank of India announced a 0.25 per cent reduction in interest rates based on MCLR. This decision is also being implemented from June 1, 2020.
