Good news for Bank of Baroda loan borrowers: BoB immediately passes on RBI rate cut benefits to retail and MSME customers

A day after the Reserve Bank of India announced to reduce the repo rate, Bank of Baroda announced to transfer the advantage to the customers. The public sector bank on Thursday announced immediate transmission of the RBI policy rate cut to its customers.  Bank of Baroda has reduced its external benchmark-linked lending rates for loans catering to Retail and MSME segments, ensuring that customers benefit quickly from the RBI’s monetary policy move.

Key Highlights

•  Lower Lending Rates: Bank of Baroda's revised lending rates are among the most competitive in the market.
• MCLR Rates: The bank's Overnight Marginal Cost of Funds-Based Lending Rate (MCLR) is 8.15%, whereas the One-Year MCLR is 9%.
•  Priority for Economic Growth: This step once again highlights the bank's resolve to offer credit at moderate prices, enhancing economic growth and financial inclusion.

Effect on Home Loan Taker

The RBI repo rate reduction is likely to provide relief to home loan consumers, as banks reduce their interest rates on lending. With the lowered interest rate, consumers are able to avail lower EMIs or repayment of their loans slightly ahead of schedule.

Other Banks with Lower Home Loan Interest Rates

Some of the other banks that have decreased their home loan interest rates due to the RBI's repo rate reduction are:

• State Bank of India: 8.25% (down by 25 basis points)
• Union Bank of India: 8.10% (down by 25 basis points)
• Bank of Maharashtra: 8.10% (down by 25 basis points)
• Canara Bank: 8.15% (down by 25 basis points)