On Monday, Bank of Baroda said that it has slashed the interest rate on loans for retail, personal and Micro, Small and Medium Enterprises (MSMEs) to 7.25 percent with effect from 28 March. Its Baroda Repo Linked Lending Rate (BRLLR) was reduced by 75 basis points with effect from 28 March 2020, it said in a statement.
The BRLLR for all new floating rate loans for all personal loans and retail loans of all asset classes and floating rate loans to MSMEs shall be 7.25 percent effective from March 28, 2020, the state-owned lender said.
The deduction comes after RBI's recent rate cut wherein repo rate was lowered from 5.15 percent to 4.40 percent.
"Bank of Baroda has immediately transmitted interest rate changes announced by the Reserve Bank of India to its customers. We encourage customers to avail of the credit lines that have been opened and assure that the Bank is available at all times to meet all the credit requirements in the most convenient way," said Bank of Baroda's Executive Director Vikramaditya Singh Khichi.
For existing loans, the interest rate under the external benchmark shall be reset at monthly intervals linked to BRLLR.
There has been no change in the mark-up/base spread or strategic premium.