Allahabad Bank loans to get cheaper as bank announces lending rate cut

State-owned Allahabad Bank Monday announced a reduction in benchmark lending rate by 0.05 percentage points across various tenors. The marginal cost of funds-based lending rate (MCLR) for a one-year loan has been reduced to 8.60 per cent from 8.65 per cent effective May 14, Allahabad Bank said in a BSE filing.

Most of the loans including housing loans are benchmarked against MCLR for one year. The revised MCLR for one, three and six months loan are 8.20 per cent, 8.40 per cent and 8.45 per cent, respectively, it said.