Union Bank of India MCLR Rates, Union Bank of India Base Rate – Feb 2018

Union Bank of India MCLR Rate

Current MCLR rate of Union Bank of India ranges from 7.70% to 8.30% varying by reset frequency of the loan. Union Bank of India revises MCLR rates on a monthly basis and benchmark its interest rates for home loan and other loans to MCLR rates of different tenor.

Base rate to be aligned to MCLR from 1st April 2018 - RBI in its monetary policy on 7th Feb 2018 has mandated that banks’ base rates be linked to MCLR rates. This will benefit Union Bank of India home loan and loan against property borrowers whose loans are linked to base rate. Any increase or decrease in Union Bank of India MCLR rates will now automatically be applicable to pre 2016 loans that are benchmarked to base rate.

Tenure wise MCLR Union Bank Rate Today
Overnight 7.70%
1 Month 7.90%
3 Month 7.95%
6 Month 8.05%
1 Year 8.20%
2 Year 8.25%
3 Year 8.30%
Union Bank Base Rate 8.95%

Union Bank of India Interest Rates

Union Bank of India Interest Rates
Home Loan Interest Rates 8.30% * Floating Detail
Loan Against Property Rates 11.10% * Floating Detail
Personal Loan Interest Rates 14.40% to 14.40% Detail
Car Loan Interest Rates 9.00% to 0.00% Detail
RD Interest Rates 5.00% to 6.75% Detail
Fixed Deposit Interest Rates 7.25% to 7.00% Detail

MCLR of Union Bank of India

Union Bank of India revises its MCLR rate on a monthly basis. Latest MCLR rates of Union Bank of India as announced on 01 Feb 2018 are:

  • Overnight MCLR Rate is 7.70%. The rate was last revised on 01 Sep 2017 to 7.70% from 7.90%
  • 1 Month MCLR Rate is 7.90%. The rate was last revised on 01 Sep 2017 to 7.90% from 8.10%
  • 3 Month MCLR Rate is 7.95%. The rate was last revised on 01 Sep 2017 to 7.95% from 8.15%
  • 6 Month MCLR Rate is 8.05%. The rate was last revised on 01 Sep 2017 to 8.05% from 8.25%
  • 1 Year MCLR Rate is 8.20%. The rate was last revised on 01 Sep 2017 to 8.20% from 8.40%
  • 2 Year MCLR Rate is 8.25%. The rate was last revised on 01 Sep 2017 to 8.25% from 8.45%
  • 3 Year MCLR Rate is 8.30%. The rate was last revised on 01 Sep 2017 to 8.30% from 8.50%

Union Bank of India MCLR Rate Trend

Date Union Bank of India MCLR
01st Feb 18
Overnight : 7.70%
1 Month : 7.90%
3 Month : 7.95%
6 Month : 8.05%
1 Year : 8.20%
2 Year : 8.25%
3 Year : 8.30%
01st Jan 18
Overnight : 7.70%
1 Month : 7.90%
3 Month : 7.95%
6 Month : 8.05%
1 Year : 8.20%
2 Year : 8.25%
3 Year : 8.30%
01st Dec 17
Overnight : 7.70%
1 Month : 7.90%
3 Month : 7.95%
6 Month : 8.05%
1 Year : 8.20%
2 Year : 8.25%
3 Year : 8.30%
01st Nov 17
Overnight : 7.70%
1 Month : 7.90%
3 Month : 7.95%
6 Month : 8.05%
1 Year : 8.20%
2 Year : 8.25%
3 Year : 8.30%
01st Oct 17
Overnight : 7.70%
1 Month : 7.90%
3 Month : 7.95%
6 Month : 8.05%
1 Year : 8.20%
2 Year : 8.25%
3 Year : 8.30%
01st Sep 17
Overnight : 7.70%
1 Month : 7.90%
3 Month : 7.95%
6 Month : 8.05%
1 Year : 8.20%
2 Year : 8.25%
3 Year : 8.30%
01st Aug 17
Overnight : 7.90%
1 Month : 8.10%
3 Month : 8.15%
6 Month : 8.25%
1 Year : 8.40%
2 Year : 8.45%
3 Year : 8.50%
01st Jul 17
Overnight : 7.90%
1 Month : 8.10%
3 Month : 8.15%
6 Month : 8.25%
1 Year : 8.40%
2 Year : 8.45%
3 Year : 8.50%
01st Jun 17
Overnight : 7.90%
1 Month : 8.10%
3 Month : 8.15%
6 Month : 8.25%
1 Year : 8.40%
2 Year : 8.45%
3 Year : 8.50%
01st May 17
Overnight : 8.00%
1 Month : 8.20%
3 Month : 8.25%
6 Month : 8.35%
1 Year : 8.50%
2 Year : 8.55%
3 Year : 8.60%
01st Apr 17
Overnight : 8.00%
1 Month : 8.20%
3 Month : 8.25%
6 Month : 8.35%
1 Year : 8.50%
2 Year : 8.55%
3 Year : 8.60%
01st Mar 17
Overnight : 8.00%
1 Month : 8.20%
3 Month : 8.25%
6 Month : 8.35%
1 Year : 8.50%
2 Year : 8.55%
3 Year : 8.60%
01st Feb 17
Overnight : 8.00%
1 Month : 8.20%
3 Month : 8.25%
6 Month : 8.35%
1 Year : 8.50%
2 Year : 8.55%
3 Year : 8.60%
01st Jan 17
Overnight : 8.15%
1 Month : 8.35%
3 Month : 8.40%
6 Month : 8.50%
1 Year : 8.65%
2 Year : 8.70%
3 Year : 8.75%
01st Dec 16
Overnight : 9.05%
1 Month : 9.10%
3 Month : 9.15%
6 Month : 9.25%
1 Year : 9.30%
2 Year : 9.35%
3 Year : 9.40%
01st Nov 16
Overnight : 9.05%
1 Month : 9.10%
3 Month : 9.15%
6 Month : 9.25%
1 Year : 9.30%
2 Year : 9.35%
3 Year : 9.40%
01st Oct 16
Overnight : 9.15%
1 Month : 9.20%
3 Month : 9.25%
6 Month : 9.35%
1 Year : 9.40%
2 Year : 9.45%
3 Year : 9.50%
01st Sep 16
Overnight : 9.15%
1 Month : 9.20%
3 Month : 9.25%
6 Month : 9.35%
1 Year : 9.40%
2 Year : 9.45%
3 Year : 9.50%
01st Aug 16
Overnight : 9.20%
1 Month : 9.25%
3 Month : 9.30%
6 Month : 9.40%
1 Year : 9.45%
2 Year : 9.50%
3 Year : 9.55%
01st Jul 16
Overnight : 9.20%
1 Month : 9.25%
3 Month : 9.30%
6 Month : 9.40%
1 Year : 9.45%
2 Year : 9.50%
3 Year : 9.55%
01st Jun 16
Overnight : 9.20%
1 Month : 9.25%
3 Month : 9.30%
6 Month : 9.40%
1 Year : 9.45%
2 Year : 9.50%
3 Year : 9.55%
01st Apr 16
Overnight : 9.25%
1 Month : 9.30%
3 Month : 9.35%
6 Month : 9.45%
1 Year : 9.50%
2 Year : 9.55%
3 Year : 9.60%
  • Effective 1st April 2016, Union Bank of India has been directed by RBI to fix its loan interest rates benchmarked to MCLR rate which is based on its marginal cost of funds. Earlier, the bank fixed its loan interest rates to Base Rate, which was based on total cost of funds of the bank. Union Bank of India MCLR rates for different tenors range from 7.70% to 8.30%.
  • RBI allows banks to set their own MCLR Rate based on their marginal cost of funds which means the cost of raising new funds for the bank. So, Union Bank of India decides and announces its MCLR rate regularly based on prescribed formula and policy rate changes by RBI in its monetary policy.
  • Note that the RBI does not decide the MCLR Rate of any bank. RBI only announces the repo rate, which influences the cost of raising new funds for the bank. Banks may or may not decide to change their MCLR rate in response to changes in the repo rate. For instance, Union Bank of India may decide to bring a lower cut in their MCLR rate compared to a Repo Rate cut. If RBI cuts the repo rate by 50 basis points or 0.5%, Union Bank may decide to cut its 1 Year MCLR rate only by 0.25% based on its internal funding and liquidity position. Hence, it is important to compare the MCLR rate change of Union Bank of India with that of RBI Repo Rate and MCLR Rate changes of other banks before taking a decision to take a loan from Union Bank of India.
  • MCLR rate can be revised by Union Bank of India every month. However, it is not mandatory for Union Bank of India to revise its rate every month and it may choose to retain the same rate for a longer period keeping them unchanged.

Union Bank of India Home Loan Interest Rate and MCLR

  • Every floating rate loan sanctioned by Union Bank of India is benchmarked to its MCLR Rate for a particular tenure, say 1 month or 3 month or 6 months.
  • Shorter duration loans such as cash credit, OD facility, personal loans are linked to short tenure MCLR rate while longer duration loans such as home loan, loan against property, vehicle loan are linked to longer duration MCLR rates.
  • The applicable rate of interest on a floating rate loan will consist of two parts - the applicable benchmark rate and the spread or margin above the benchmark.
  • Your loan from Union Bank of India will be repriced periodically depending upon the tenure of the MCLR to which it is linked. So, a home loan linked to 1 Year MCLR rate of Union Bank of India will be repriced every year. Say, you take a loan from Union Bank at 1 Year MCLR rate plus 20 bps spread when the 1 Year MCLR rate is 8.20%. This loan will initially be priced at 8.4%. Its next re-pricing will be done one year from now. If the 1 Year MCLR rate after one year increases by 10 bps, the loan will be priced at 8.5% for the next year.

Compare MCLR Rate Movement



    Compare Union Bank of India MLCR Rates with Other Banks

    About Union Bank of India

    • Union Bank of India's registered office is located at Union Bank Bhavan, 239, Vidhan Bhavan Marg, Nariman Point Mumbai Maharashtra-400021 .
    • Union Bank of India's management is led by its CEO Mr. Arun Tiwari.
    • Its current Base Rate is 10.25%, which was last revised on 05th Oct 15.
    Union Bank News - Feb 2018
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