Bank of Baroda has slashed its lending rate by 10 basis points, which will, in turn, make auto loans, home loans, and other loans offered by the lender more affordable. The lending rate has been cut for loans of up to 1 year. Bank of Baroda announced in a regulatory filing that the new lending rates are effective from 7 March 2019.
The public sector lender also announced that the Marginal Cost of Funds Based Lending Rate, which is also known as the MCLR, for loans with an overnight tenor has been fixed at 8.25%, while the MCLR for loans with a one-month tenor has been fixed at 8.30%. The MCLR for the one-year loan tenor was reduced to 8.65% from 8.75%. Retail loans are usually benchmarked against the one-year MCLR.
The bank has reduced its lending rates one month after the Reserve Bank of India reduced the key lending rate to 6.25% due to inflation rates staying under the target range.
Bank of Baroda, which is a leading public sector lender in India, currently offers a number of loans such as home loans, two-wheeler loans, car loans, education loans, personal loans, etc., as part of its product suite.
Sources: Moneycontrol, The Economic Times