Public sector Bank of Maharashtra announced to make the debt cheaper to 0.50 percent cheaper on Thursday. The bank said it has cut its interest rate up to 50 basis points on retail loans including homes, cars, education and other loans connected to repo linked lending rates. According to PTI news, the cut in interest rate by the Pune -based bank is in accordance with the rates in the rates made by the RBI last week. The bank has also said that the new rates are effective from June 10.
What is the initial interest rate on loan now?
According to the news, with the bank’s decision cut in interest rates, now its home loan starts at 7.35 percent and the car loan 7.7 percent, one of the lowest interest rates in the banking industry. The bank said in a statement that this benefit of the reduction in interest rates reflects the bank’s commitment to provide the best financing solutions to all its customers and help them fulfill their dreams. The bank said that in the current interest rate scenario, it is making retail loans cheaper to bring happiness among its customers.
Bank of Baroda also reduced rates
Here, Bank of Baroda has also cut its marginal cost of funds based lending rate (MCLR) by 0.50 percent for different periods from one month to one year. After the RBI action, many banks have cut the lending rate and the rest of the banks will do so soon. On Friday, the RBI cut the benchmark interest rate more than 50 basis points and unphetful deducts in cash reserved ratio for banks, so that money could be available to lend more and more to promote the economy.
RBI has cut repo rate by 0.50%
The six -member monetary policy committee of the RBI, headed by Governor Sanjay Malhotra and three external members,, reduced the benchmark recurrent or repo rate from 50 basis points to 5.5 percent. It also reduced it to 3 percent in cash reserve ratio (CRR) by cutting 100 basis points, which will already add Rs 2.5 lakh crore to surplus liquidity in the banking system.
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