Four banks have reduced the interest rate, now EMI will be reduced; customers will get many more benefits
After the reduction in repo rate by RBI, major banks like Bank of Baroda, HDFC Bank, Punjab National Bank and UCO Bank have reduced their interest rates by up to 50 basis points. This reduction will reduce the EMI of home auto and personal loans. Bank of Baroda has reduced the loan linked to repo rate by 50 basis points.
They have also begun passing the benefit of the cut in repo rate by the RBI to the consumers. Four public as well as private sector banks have now reduced their interest rates up to 50 basis points. With the reduction in their interest rates, the way has now been opened to decrease the monthly installment (EMI) of several loans, such as house, automobile, and personal.
State-owned Bank of Baroda (BOB) has reduced its interest rate on loans with respect to the repo rate by 50 basis points. The bank now has a repo-based lending rate (RRLR) of 8.15%. The bank has provided its customers the entire benefit of the cut in the repo rate by the RBI.
Meanwhile, the private-sector HDFC Bank reduced the Marginal Cost of Fund-Based Lending Rate (MCLR) by 10 basis points. With the reduction, the interest rate of the bank on a one-month loan has reduced to 8.90%. On the same lines, the three-month loan interest has reduced to 8.95% while the six-month and one-year loans have reduced to 9.05%. The two and three-year loan interest has reduced from 9.20% to 9.10%.
