Recently, the Reserve Bank of India cut repo rates by 25 basis points, which was in line with expectations. The rates have been slashed to 6.25 per cent.
Some banks have reduced interest rates after RBI pushed the banks to pass the rate cut to customers.
The MCLR rate is the minimum rate of interest at which a bank lends to its borrowers.
Here are some banks which have slashed base rates:
1) ICICI Bank
ICICI Bank has cut its marginal cost of funds based lending rate (MCLR) by 5 basis points. Which will be effective from October 1.
Lending rate for one year is 9.05% while rates for the one month and three month rate is at 8.85%.
2) Kotak Mahindra Bank
Kotak Mahindra Bank slashed lending rates by up to 0.1%, following the 0.25% repo rate cut by the RBI. Now, the base rate is applicable at 9.40% from 9.50%, reports PTI.
3) Canara Bank
The bank revised the base rate by 0.05% to 9.60% from 9.65%. The new rate will be effective from 11 October, Canara Bank said.
4) Indian Bank
After the RBI rate cut, the Indian Bank reduced marginal cost of funds based lending rate (MCLR) by up to 0.1%.
Indian Bank has reduced MCLR rate by 0.01% from 9.45% to 9.35% for one year loan, which will be effective from 7 October. For all other tenures, the rate of reduction is 0.05%.
5) Karur Vysya Bank
Karur Vysya Bank reduced MCLR rate by 0.35% on various maturities.
6) Oriental Bank of Commerce (OBC)
Oriental Bank of Commerce reduced lending rate by up to 0.15 per cent across various maturities a few days after 0.25 per cent repo rate cut by RBI, reports PTI.
7) United Bank Of India
United Bank of India, has reduced MCLR rate by 0.05 per cent across all tenures with effect from October 17.
Now one-year tenure loan would be available at 9.40 per cent as against 9.45 per cent, it said. At the same time, 6-month loans would be cheaper at 9.35 per cent as compared to 9.40 per cent, PTI added.