As per the bank’s communiqué, all retail loans (housing, education, vehicle), and MSME loans, which are linked to RLLR, will now be available at cheaper rates.
Following the Reserve Bank of India”s (RBI) recent decision to reduced repo rate by 75 basis points, several banks have reduced their repo linked lending rates.
Besides, BoM said it will reduce its marginal cost of funds based lending rates (MCLR) across all tenors up to 25 basis points from April 7.
The one-year MCLR will now be revised to 8 percent from 8.25 percent, said the lender.
For six months, MCLR rate has been now revised to 7.80 percent from 7.90 percent.
The reduction in MCLR is intended to support economic growth and industrial development and ensure rate transmission, said the lender.