Public sector lender Bank of Baroda has slashed the marginal cost of funds based lending rate (MCLR) by 0.15 percent across all tenors. The one-year tenor, the benchmark for all consumer loans such as auto, retail, housing, has been reduced to 8 percent from existing 8.15 percent, said Bank of Baroda in an exchange filing.
“The bank has revised marginal cost of funds based lending rate (MCLR) with effect from April 12, 2020,” Bank of Baroda said.
For the overnight to six-month tenor loans, the MCLR has been reduced to 7.40-7.85 per cent. With the rates witnessing a fall, the cost of consumer loans is likely to come down for the customers. Earlier, State Bank of India (SBI) lowered MCLR by 0.35 percent across all tenors.
The lender also changed the interest rates on savings accounts lower to 2.75 percent from 3 percent, which will come into effect on April 15. Last month, SBI had reduced the lending rates by 75 basis points, clearing the entire repo rate cut announced by the RBI to the customers. Besides, interest rates on retail and bulk deposits were brought between 20 to 100 basis points across various tenors.