State-owned Allahabad Bank announced a reduction in benchmark lending rate by 0.05 percentage points across various tenors. The marginal cost of funds-based lending rate (MCLR) for a one-year loan has been reduced to 8.60% from 8.65% effective May 14.
Most of the loans including housing loans are benchmarked against MCLR for one year.
Revised MCLR:
1 month: 8.20%
3 months: 8.40%
6 months: 8.45%
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.
Allahabad Bank:
Type: Public
Founded: 24 April 1865
Headquarters: Kolkata, India
MD & CEO: S. S. Mallikarjuna Rao
It is the oldest joint stock bank in India