Bank of India and UCO Bank Made Loans Cheaper: Public sector Bank of India and UCO Bank on Wednesday announced a reduction of 0.25 percent in loan rates within a few hours of the Reserve Bank of India (RBI) ‘policy rate repo rate cut. This move of these banks will prove to be helpful for existing and new borrowers.
Bank of India and UCO Bank said in different information given to the stock market in regulatory filing that the loan rate has been amended after the Reserve Bank of India (RBI) cut short-term loan rate (repo rate). A similar announcement is expected from other banks soon.
After this deduction, Bank of India’s new repo -based loan rate (RBLR) has come down from earlier 9.10 per cent to 8.85 per cent. The bank said that the new rate has become effective since Wednesday. Meanwhile, UCO Bank said that it has reduced the repo related loan rate to 8.80 percent. The new rate will be effective from Thursday.
It is worth mentioning that earlier RBI Governor Sanjay Malhotra had announced the reduction of the major policy rate repo rate by 0.25 per cent to 6.0 per cent, which was 6.25 per cent earlier.
