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.
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.