Bank Of Baroda Lowers Lending Rate By 20bps

After SBI, Bank of India and HDFC Bank, Bank of Baroda has slashed marginal cost of funds-based lending rates (MCLR) by up to 20 bps across several tenures. The new rates will become effective from December 12.

Bank Of Baroda Lowers Lending Rate By 20bps

The bank has however reduced its one-year MCLR rate by a tad 5 basis points to 8.25%. 1 basis point is one-hundredth of a percentage point. All of the retail loans including personal, home loan etc. are pegged to one-year MCLR rate.

Further the bank's one-month and overnight rates are cut by 20 bps to 7.65%. And its 3-month and 6-month MCLR rate stand reduced by 10 bps to 7.8% and 8.10%, respectively.

Yesterday, SBI slashed its 1-year MCLR by 10 bps to 7.9%, Bank of India lowered it by 20bps to 8.2% and HDFC Bank decreased it by 15bps to 8.15%.

The interest rate on loans has been reduced despite RBI maintaining status quo in its December monetary policy meet.

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