Loan became cheaper, these 2 public sector banks reduced interest rates- know which customers will get
reserve Bank of India There was no change in the repo rate in August and announced to retain the repo rate at 5.5 percent. Despite this, 2 banks in the public sector have announced the loans cut in loan interest rates. After this deduction, the new interest rates have also been implemented from 1 September. Punjab National Bank (PNB) and Bank of India (BOI) have cut their marginal fund-based lending rates (MCLR). This decision of banks will benefit customers who have taken loans related to MCLR.
EMI burden will be relieved
PNB has cut MCLR by up to 15 basis points and Bank of India has cut interest rates of 5 to 15 basis points in interest rates for loans for all other periods except overnight period. This latest deduction made by Punjab National Bank and Bank of India in MCLR will reduce the loan EMI and customers will have to pay less in comparison as interest.
What is MCLR
MCLR i.e. marginal funds serve as a benchmark rate to determine interest rates on different floating rate loans such as home loans, personal loans and auto loans for banks. Let us tell you that MCLR does not apply to the new loan as new floating rate loans are connected to the external benchmark borrowing rate (EBLR). Banks also give their customers an option of switch to EBLR from MCLR.
What will be the new MCLR of Punjab National Bank now
Punjab National Bank reduced Overnight MCLR from 8.15% to 8%, one month MCLR reduced from 8.30% to 8.25%, three months MCLR was reduced from 8.50% to 8.45%, six -month MCLR reduced from 8.70% to 8.65%, 8.65%, one year MCLR was reduced from 8.85% and 8.85% to 8.85% and 8.85% for 8.85% and three years. MCLR has been reduced from 9.15% to 9.10%.
What will be the new rates of Bank of India now
On the other hand, Bank of India has kept Overnight MCLR unchanged at 7.95%. This government bank reduced 1 month MCLR from 8.40% to 8.30%, 3 months MCLR from 8.55% to 8.45%, 6 months MCLR was reduced from 8.80% to 8.70%, 1 year MCLR was reduced from 8.90% to 8.85% and MCLR of 3 years by 9.15% by 9.00%. Is.
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