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Following the Reserve Bank of India's recent cut in repo rate, Indian Overseas Bank cuts interest rate on loans by 5 basis points for tenures of one year and above.
The bank's MCLR (Marginal Cost of Funds based Lending Rate), that is the rate below which it cannot lend, were marginally lowered for various tenures across different categories of loans with effect from 10 April 2019.
According to IOB's official website, the MCLR for different tenures were revised to:
| Tenure | Rate of Interest (%) |
|---|---|
| Overnight MCLR | 8.15 |
| One - Month MCLR | 8.3 |
| Three - Month MCLR | 8.45 |
| Six - Month MCLR | 8.5 |
| One Year MCLR | 8.65 |
| Two Year MCLR | 8.75 |
| Three Year MCLR | 8.85 |
On 4 April, on concluding its bi-annual monetary policy meet, the RBI cut the repo rate for the second straight time to 6 percent in order to stimulate demand and economic growth. It is the rate at which the central bank lends money to commercial banks.
The State Bank of India and Bank of Maharashtra have also lowered their MCLR following the announcement of RBI's monetary policy. Soon other banks could follow suit.
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