Government The region’s Bank of Baroda (BOB) said on Sunday that it had cut its major borrowing rates related to the repo rate by 0.50 percent as per the reduction in the interest rates of the Reserve Bank of India (RBI). Meanwhile, HDFC Bank of private sector has cut various periods of 0.10 percent in various periods in the marginal cost based lending rate (MCLR) of its fund. This will benefit the borrowers whose loans are connected to this benchmark. The BOB said in a statement that the RBI has cut the loan rate (RLR) from June 7 by 0.50 percent, according to the cut in policy repo rate by the RBI.
BOB gave full advantage of rate cut to customers
Bank of Baroda said that now its RLLR is 8.15 percent. Along with this, BOB has completely implemented the RBI deduction in RLLR. According to HDFC Bank’s website, the new MCLR rates are effective from June 7. With cuts, one day and one month rates have fallen by 0.10 percent to 8.90 percent. The rate of three months has fallen by 0.10 percent to 8.95 percent. Whereas six months and one year rate has fallen by 0.10 percent to 9.05 percent. The loan rate for a period of two years and three years has been reduced from the earlier 9.20 percent to 9.10 percent.
Repo rate is reduced to 5.50%
Earlier, on Friday, the RBI cut interest rates by more than 0.50 percent to promote the economy and unexpectedly cut cash reserved ratio to provide more funds to lend to banks. This time the RBI cut the repo rate directly by 50 basis points i.e. 0.50 percent. After this latest decision, the repo rate has now come down from 6.00 percent to 5.50 percent.
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