Axis Bank on Monday announced a reduction in its benchmark lending rates across all tenors. The private lender has reduced its MCLR or marginal cost of funds-based lending rates by up to 10 basis points or 0.10 percentage point. MCLR is the benchmark rate through which banks lend money to home loans borrowers. The new rates will be effective from August 17, according to the bank's website. After revision, the bank's MCLR stands at 8.55 per cent for the one-year tenor from 8.65 per cent earlier.
Here are revised Axis Bank's tenor-wise MCLR, effective from August 17:
| Tenor | MCLR rates from August 17 | Old 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% |
Earlier this month, SBI or State Bank of India, the country's largest lender by assets, had announced a reduction in its benchmark lending rates 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.
(Also read: RBI considers linking some new bank loans to benchmark rate)
The announcement by banks had come after the Reserve Bank of India's Monetary Policy Committee (MPC) cut the repo rate by 35 basis points to 5.40 per cent, the lowest in over nine years. The repo rate was slashed for the fourth consecutive time by the MPC. Repo rate is the interest rate at which the RBI lends money to commercial banks.
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