IOB Cuts MCLR by 50 Basis Points

Chennai, Jul 16 (PTI) Public sector Indian Overseas Bank revised its Marginal Cost of Funds-based Lending Rates (MCLR) by 50 basis points across all tenors with immediate effect, the bank said on Wednesday.

The Asset Liability Management Committee (ALCO) of the bank, at its meeting held on July 14, reviewed the bank's MCLR and decided to reduce it with effect from July 15.

Accordingly, the revised MCLR for the overnight tenure has been reduced to 8.15 per cent from the existing 8.25 per cent.

For the one-month tenure, the MCLR has been revised to 8.40 per cent from the earlier 8.50 per cent.

For tenures of three, six, and 12 months, the MCLR has been revised to 8.55 per cent (down from 8.65 per cent), 8.80 per cent (down from 8.90 per cent), and 9 per cent (down from 9.10 per cent), respectively, the bank said.

Marginal Cost of Funds-based Lending Rates are used in consumer loans, such as auto and personal loans. Borrowers whose loans are linked to this benchmark are expected to benefit from the reduced rates.