UCO Bank Reduces MCLR: Relief for Home Loan and Personal Loan Borrowers

UCO Bank has revised its benchmark lending rates, including the Marginal Cost of Funds Based Lending Rate (MCLR) and Treasury Bill Linked Rate (TBLR), with effect from 11 January 2026. 

The revision is expected to make borrowing slightly more affordable for home loan customers, personal loan borrowers, and small businesses with floating-rate loans.

Borrowers whose loans are linked to MCLR or TBLR may see a reduction in their equated monthly instalments (EMIs) from the next reset period, depending on loan terms.

Revised MCLR Rates (Effective 11 January 2026)

The reduction across tenors ranges between 0.05% and 0.10%. Loans linked to the one-year MCLR, commonly used for home loans, may reflect the revised rate at the next reset date.

TBLR Rates Also Adjusted

Alongside MCLR, UCO Bank has slightly lowered its Treasury Bill Linked Rates. Borrowers with TBLR-linked products may also benefit from marginally reduced lending rates, subject to contractual reset cycles.

What This Means for Borrowers?

For existing floating-rate loan customers, the rate revision could translate into lower interest costs over time. New borrowers may access loans at marginally reduced benchmark-linked rates, subject to applicable spreads and credit profiles.

UCO Bank Share Price Performance

UCO Bank’s share price showed modest movement in early trading on 12 January 2026. The stock was trading at ₹28.59 at around 10:15, down ₹0.19 or 0.66% from its previous close of ₹28.78. It opened at ₹28.78 and moved within a narrow intraday range, touching a high of ₹28.80 and a low of ₹28.27.

Read More: Corporate Actions This Week (Jan 12–16, 2026): Stock Splits, Bonus Issues, and Interim Dividends.

Conclusion

UCO Bank’s latest reduction in benchmark lending rates may offer incremental relief to borrowers with MCLR- and TBLR-linked loans.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.