BOB Loan Rate Cut: Big festivals are coming in the country. Meanwhile, Bank of Baroda has given a big gift to its customers on the occasion of the beginning of the festive season. Bank of Baroda announced a cut of 10 basis points in its overnight MCLR (Marginal Cost of Funds-Based Lending Rate).
This new rate will now be 7.85 percent and will be effective from September 12. With this decision of the bank, home loans, car loans and personal loans will become cheaper. In such a situation, if you are planning to buy a car or house in the festive season, then a better opportunity has come in front of you.
The bank has also cut its 3-month MCLR by 15 basis points, bringing it down to 8.20 percent. This information was given in a statement given to the stock exchange. However, the bank has not made any change in its 1 month and 6-month MCLR.
One month MCLR will remain at 7.95 percent and 6 month MCLR will remain at 8.65 percent. Most importantly, one year MCLR, which is considered a benchmark for home loans and auto loans, has not changed and will remain at 8.80%.
Know what is MCLR
MCLR is the minimum interest rate below which banks cannot give loans. Except in those cases which are allowed by the Reserve Bank of India (RBI). It was implemented in April 2016 in place of the base rate system so that the impact of changes in RBI’s policy interest rates reaches the customers directly and quickly.
Know the interest rates of home loan and car loan
According to the news published in Economic Times, the interest rate of Bank of Baroda’s home loan will start from 7.45 percent. Similarly, car loan rates will start from 8.15 percent. Similarly, personal loan rates will start from 10.40 percent.
