UCO Bank has announced a downward revision in its benchmark lending rates, including the Marginal Cost of Funds Based Lending Rate (MCLR) and the Treasury Bill Linked Rate (TBLR), effective 11 January 2026. The move is expected to offer moderate financial relief to home loan, personal loan, and small business borrowers servicing floating-rate loans.

The rate cut may result in reduced equated monthly instalments (EMIs) for customers whose loans are tied to MCLR or TBLR, subject to their individual loan reset cycle and terms.

Revised MCLR Rates Effective 11 January 2026

UCO Bank’s updated MCLR across various tenors is as follows:

• Overnight: 7.90% (previously 7.95%)
• One Month: 8.15% (previously 8.20%)
• Three Months: 8.40% (previously 8.45%)
• Six Months: 8.65% (previously 8.70%)
• One Year: 8.75% (previously 8.80%)

The reduction ranges between 5 and 10 basis points across tenors. Home loans, which are typically benchmarked to the one-year MCLR, are likely to reflect the revised rate at the upcoming reset date.

Adjustment in TBLR as Well

In addition to MCLR, UCO Bank has also marginally reduced its Treasury Bill Linked Rates. Customers with TBLR-linked loans may benefit from slightly lower interest rates, depending on their contracted reset frequency and spread charged by the bank.

Impact on Borrowers

For existing floating-rate customers, the revised benchmarks may gradually lower interest costs and EMIs over the remaining loan tenure. Prospective borrowers could also gain from marginally cheaper borrowing, although the final lending rate will depend on spreads, loan category, and individual credit profiles.

The revision aligns with the broader trend of banks adjusting lending benchmarks in response to evolving interest-rate conditions and liquidity dynamics.

Summary

UCO Bank has reduced MCLR and TBLR rates with effect from 11 January 2026, cutting lending benchmarks by 0.05%–0.10% across tenors. The change is expected to benefit home loan, personal loan, and MSME borrowers with floating-rate loans, potentially resulting in lower EMIs from the next reset date.

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