Mumbai, June 8 (IANS) The Reserve Bank of India (RBI) has recently cut its interest rates for loans after the recent reduction of repo rates by the Punjab National Bank (PNB), Bank of India and UCO Bank.
Punjab National Bank, the benefit of the deduction made by the central bank was one of the first banks to give its customers, which reduced its repo-linked lending rate from 8.85 percent to 8.35 percent.
However, the bank has kept its base rate and marginal cost of lending rate (MCLR) unchanged.
Bank of India reduced its repo-based lending rate from 8.85 percent to 8.35 percent.
UCO Bank adopted a different route and cut all the loan periods by cutting 10 basis points in its MCLR. These changes that come into effect from June 10 will make different types of loans such as home and personal loans a little more economical.
The bank has reduced its overnight MCLR from 8.25 percent to 8.15 percent, one month MCLR from 8.45 percent to 8.35 percent and three months MCLR from 8.6 percent to 8.5 percent.
UCO Bank reduced six months and one year MCLR to 8.8 percent and 9 percent respectively.
Bank of Baroda also announced a deduction of 50 basis points in its repo-linked borrowed rates for select loan periods.
Reserve Bank of India Governor Sanjay Malhotra on Friday announced a large reduction of 50 basis points to 6 percent to 5.5 percent to promote the growth in the economy.
With this, the RBI Governor also announced a reduction of 100 basis points in CRR, which will be effective in four equal installments of 25 basis points from September 6, October 4, November 1 and 29.
-IANS
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