look news india
New Delhi: If you are a customer of Bank of Baroda or are planning to take a loan from this bank, then there is a great news for you. The major public sector bank, Bank of Baroda, has announced to cut interest rates on loans, giving relief to its customers. This decision will make home loan, car loan and other types of loans cheap, which will reduce the burden of EMI of borrowers.
The bank has cut its marginal cost of funds based lending rate (MCLR) by 0.05 percent. This deduction is made for all periods loans and the new rates are implemented with immediate effect.
What are the new interest rates?
After this deduction, one year of MCLR of Bank of Baroda, which is the standard for most consumer loans such as car, retail and housing loans, has come down from 8.85 percent to 8.80 percent.
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One night MCLR (Overnight MCLR): It has come down from 8.35% to 8.30%.
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One month MCLR: It has come down from 8.45% to 8.40%.
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Three months MCLR: It has come down from 8.55% to 8.50%.
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Six months MCLR: It has come down from 8.75% to 8.70%.
How will customers benefit?
MCLR is the minimum rate by which no bank can lend below. The decrease in MCLR simply means that interest rates will be reduced for both new and existing borrowers (whose loan is connected to MCLR). This will reduce their monthly installments (EMI) and it will be a little easier to repay the loan.
This step has been taken at a time when the Reserve Bank of India (RBI) has kept the repo rate unchanged in its recent monetary policy review. This decision of Bank of Baroda can increase competition in the market and motivate other banks to reduce their interest rates. It can be a great opportunity for those who are dreaming of buying a house or car.