NEW DELHI : State-owned Union Bank of India on Tuesday said it has cut the marginal cost of funds-based lending rate (MCLR) by up to 20 basis points (bps) across various tenors, effective August 1.

One-year MCLR will now come down from 8.55% to 8.50%, the bank said in a statement.

Most of the consumer loans, such as retail, automobile and personal, are based on the benchmark one-year MCLR.

The overnight tenor and one-month MCLR are down to 8.10% each as compared with the earlier rates of 8.25% and 8.30%, respectively.

While the three-month and six-month rates have been reduced by 10 bps each, to 8.25 per cent and 8.35%.

"As a result, interest rates on all loans linked to MCLR stand reduced up to 20 bps with effect from August 1, 2019. This is the second rate cut by our bank since June 2019," Union Bank of India said.

The lender said it is taking a cue from the latest measures announced by the Reserve Bank of India and has cut MCLR by up to 20 bps across tenors to support growth of the economy.