Union Bank Aligns Loan Rates with RBI's Surprise Cut
Union Bank of India reduced lending rates by 50 basis points, aligning with the RBI's recent rate cut. The changes, affecting EBLR and RLLR, aim to benefit retail and MSME borrowers. The RBI's unexpected decision aims to stimulate economic growth by increasing loan availability.
- Country:
- India
State-owned Union Bank of India has reduced its lending rate by 50 basis points, following the Reserve Bank of India's (RBI) recent rate moderation.
In an official statement, the Union Bank announced a downward revision in both the External Benchmark Lending Rate (EBLR) and Repo Linked Lending Rate (RLLR) by 50 basis points.
This strategic move fully aligns Union Bank's rates with the RBI's reduction and is expected to benefit new and existing retail and MSME borrowers.
The RBI recently surprised financial markets with a larger-than-expected 50 basis points rate cut, aiming to boost the economy by encouraging lending.
The monetary policy committee, led by Governor Sanjay Malhotra, also cut the cash reserve ratio, infusing additional liquidity into the banking system.
(With inputs from agencies.)
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