Bank of Baroda cuts one-year MCLR to 8.25 pc

Bank of Baroda on Tuesday reduced the one-year Marginal Cost of Lending Rate (MCLR) by 0.05 percentage points to 8.25 per cent from Thursday.

The one-year MCLR is used as a benchmark for setting most of the personal loans such as home and auto.

"We advice that the bank has revised Marginal Cost of Funds Based Lending Rate (MCLR) with effect from December 12, 2019," Bank of Baroda said in a regulatory filing.

The lender has also slashed MCLR for other tenors from overnight to six months in the range of 7.65-8.10 per cent.

On Monday, the country's largest lender State Bank of India slashed MCLR by 10 basis points across all one-year products to 7.90 per cent, effective December 10, 2019. This was the eighth consecutive cut in MCLR by SBI this fiscal.

Besides, Bank of India has reduced one-year MCLR to 8.20 per cent as against 8.30 per cent earlier.

Banks are cutting MCLR after the Reserve Bank left the repo rate unchanged at 5.15 per cent in its monetary policy review last week.