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Bank of India cuts lending rates by 0.05-0.10% from Sept 10

Banks had adopted MCLR from April 2016 following the directive of Reserve Bank of India

Press Trust of India  |  New Delhi 

Bank of India
Bank of India

Public sector lender has cut rates by 0.05-0.10 per cent for various tenors from September 10.

"has reduced its marginal cost based lending rates (MCLRs). The revised marginal cost based for one-year now stands at 8.30 per cent," the bank said in statement today.

As of now, the one year stands at 8.40 per cent.

The reduced rates would come into effect from September 10, 2017, said.

Among others, the overnight and 1-month have been cut by 0.10 per cent each to 7.90 per cent and 8 per cent, respectively.

While loan of 3-month tenor will bear interest rate of 8.10 per cent, down 0.05 per cent from current

There has been no change for 6-month which stands at 8.25 per cent.

had adopted from April 2016 following the directive of Reserve

However, a majority of them still follow the base rate or the minimum formula to charge interest on loans.

MCLR, which is changed every month, is a uniform methodology, which was introduced to ensure fair interest rates to borrowers as well as

The Reserve Bank in its last monetary policy in August had said it would review the method as were not passing on the benefit of repo rate reduction to consumer.

A new market-linked benchmark rate is being worked out for a better rate transmission, Deputy Governor Viral Acharya had said.

Shares of closed 0.87 per cent up at Rs 144.30 on BSE.

First Published: Thu, September 07 2017. 20:48 IST