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Biznextindia: Bank of Maharastra has reduced its Marginal Cost of Funds based Lending Rates(MCLR) by 20 basis points for various tenures.

While the overnight MCLR has been reduced to 7.00 per cent from 7.20 per cent per annum in June, one-month MCLR has been reduced to 7.10 per cent per annum and three months MCLR to 7.20 per cent per annum from 7.30 per cent and 7.50 per cent respectively in June.

Similarly, Six-month MCLR has been reduced to 7.30 per cent while one-year MCLR has been reduced to 7.50 per cent.

Meanwhile, the base rate has been kept unchanged at 9.40 per cent per annum.

MCLR or Marginal Cost of Funds based Lending Rate is the minimum lending rate below which a bank is not allowed to lend except in some exceptional cases as authorized by the RBI. Implemented by the RBI on 1st April 2016, MCLR replaced the earlier base rate system to determine the lending rates for commercial banks. It is an internal reference rate for banks to determine the interest they can levy on loans.