Bank of Baroda cuts one-year MCLR to 8.25% after repo rate unchanged in monetary policy review

  • The one-year MCLR is used as a benchmark for setting most of the personal loans such as home and auto

  • Bank of Baroda has also slashed MCLR for other tenors from overnight to six months in the range of 7.65-8.10 percent

  • Banks are cutting MCLR after the Reserve Bank left the repo rate unchanged at 5.15 percent in its monetary policy review last week

New Delhi: Bank of Baroda on Tuesday reduced the one-year Marginal Cost of Lending Rate (MCLR) by 0.05 percentage points to 8.25 percent from Thursday.

The one-year MCLR is used as a benchmark for setting most of the personal loans such as home and auto.

"We advice that the bank has revised Marginal Cost of Funds Based Lending Rate (MCLR) with effect from December 12, 2019," Bank of Baroda said in a regulatory filing.

 Bank of Baroda cuts one-year MCLR to 8.25% after repo rate unchanged in monetary policy review

Representative image. Reuters

The lender has also slashed MCLR for other tenors from overnight to six months in the range of 7.65-8.10 percent.

On Monday, the country's largest lender State Bank of India slashed MCLR by 10 basis points across all one-year products to 7.90 percent, effective 10 December 2019. This was the eighth consecutive cut in MCLR by SBI this fiscal.

Besides, Bank of India has reduced one-year MCLR to 8.20 percent as against 8.30 percent earlier.

Banks are cutting MCLR after the Reserve Bank left the repo rate unchanged at 5.15 percent in its monetary policy review last week.

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Updated Date: Dec 11, 2019 07:10:31 IST