New Delhi Following a 0.5% reduction in the repo rate by the Reserve Bank of India (RBI), various banks across the country have started lowering their loan interest rates. State-run banks are leading the initiative.
Banks like Punjab National Bank (PNB), Bank of Baroda, UCO Bank, Bank of India, and Karur Vysya Bank have already reduced interest rates on loans that are linked to external benchmarks.
As a result, home and vehicle loans may now come with lower EMIs (Equated Monthly Installments) for customers. This is because of the reduced interest burden.
Key Changes:
PNB has cut its repo-linked loan interest rate from 8.85% to 8.35%, although its MCLR (Marginal Cost of Funds based Lending Rate) remains unchanged.
Bank of Baroda has reduced its loan interest rate to 8.15%.
HDFC Bank has reduced its overnight and monthly rates to 8.90%.
UCO Bank has slashed its loan interest rate by 0.50%.
Bank of India has reduced its repo-linked loan interest rate to 8.75%.
Indian Bank has brought down its repo-linked interest rate to 8.20%.
Karur Vysya Bank has reduced its 6-month MCLR to 9.80%.
After the repo rate cut, the RBI had urged banks to pass on the benefits to customers promptly, although the final decision was left to individual banks.
Some smaller banks had immediately lowered interest rates following the RBI’s monetary policy announcement.
Bottom Line:
Thanks to these reductions, borrowers will now get loans with lower EMIs, easing their monthly financial burdens.
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