Public Sector Lender Bank of Maharashtra (BoM) has decreased its Repo Linked Lending Rate (RLLR) by 40 bps to 7.05 percent. The new rates with be effective from June 8.
Now all retail loans (housing, education, vehicle), loans to MSMEs, which are linked to RLLR, will be offered at cheaper rates. This will benefit the retail and MSME borrowers further, mentioned a press release from the lender.
The lender has also reduced its Marginal Cost of Funds based Lending Rates (MCLR) consecutively for the third month. MCLR rate has also been slashed by 20 bps below the existing levels across all tenors with effect from June 8. Bank’s overnight, one month and three months MCLR have been brought down to 7.20 percent (from 7.40 percent), 7.30 percent (from 7.50 percent) and 7.40 percent (from 7.60 percent) in these tenors. For six months, MCLR rates has been linked to 7.50 percent (down from 7.70 percent) and one year MCLR to 7.70 percent (down from 7.90 percent).
The reduction in MCLR is to support economic growth and industrial development and ensure rate transmission.