BoI has also cut benchmark marginal cost of funds based lending rate (MCLR) (Photo Credit: Twitter)
Bank of India on Sunday said it has reduced the lending rate linked to external benchmark by 75 basis points (bps) to 7.25 per cent, effective April 1. The lender’s external benchmark lending rate is linked to the RBI’s repo rate, which was reduced by 75 bps to 4.40 per cent on March 27.
"The external benchmark lending rate has been reduced by 75 bps to 7.25 per cent per annum. With this, we have passed on the benefit of rate cut announced by RBI to our home, vehicle and MSME customers," the public sector lender said in a statement.
It has also cut benchmark marginal cost of funds based lending rate (MCLR) by 25 bps across tenors from one year to one month, and by 15 bps for overnight tenor. The one-year MCLR is now 7.95 per cent per annum.
State Bank of India (SBI) has already passed on the complete rate cut benefits to its borrowers availing loans linked to external benchmark linked lending rate (EBR) and repo linked lending rate (RLLR).
Following a 75 basis points reduction in interest rate, SBI's external benchmark linked lending rate will come down to 7.05 per cent per annum from 7.80 per cent earlier. Similarly, SBI's linked lending rate will reduce to 6.65 per cent per annum from existing 7.40 per cent.