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Axis Bank reduces key lending rates across all tenors

ZeeBiz WebTeam | Aug 20, 2019, 08:04 PM IST

Private lender, Axis Bank on Monday reduced its benchmark lending rates across all tenors.  MCLR is the benchmark rate through which banks lend money to home loans borrowers. It has reduced the MCLR or marginal cost of funds-based lending rates by up to 10 basis points or 0.10 percentage point. 

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According to the bank's website, the new rates will get effective from August 17 onward. Now the lastest MCLR of the bank now stands at 8.55% for the one-year tenor from 8.65 per cent earlier.

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Tenor               MCLR rates from August 17        Previous MCLR rates

Overnight                             8.20%                                   8.25%
1 month                                 8.20%                                   8.25%
3 month                                8.40%                                   8.50%
6 month                                8.50%                                   8.60%
1 year                                      8.55%                                   8.65%
2 year                                     8.65%                                   8.75%
3 year                                     8.70%                                   8.80%

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SBI, the country's largest lender announced the reduction in its MCLR across all tenors by 15 basis points. The move was followed by several other public sector lenders including Bank of India, Union Bank of India and Andhra Bank.

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The banks are announcing the reduction in MCLRs after the Reserve Bank cut the repo rate by 35 basis points to 5.40 per cent, the lowest in over nine years.