Bandhan Bank cuts lending rate for small borrowers to 10.52%

Bandhan Bank will now charge its micro borrowers interest at 18.52% a year, down from 19.90%

Kolkata-based Bandhan Bank on Monday said it has cut its Marginal Cost of funds-based Lending Rate or MCLR by 148 basis points to 10.52 per cent per annum. The decision was taken at the meeting of the bank's Asset Liability Committee.

One basis point is one-hundredth of a percentage point.

The new rate takes effect from Tuesday, January 3. Following this, Bandhan Bank will now charge its micro borrowers (those with loans up to Rs 1 lakh) at 18.52 per cent per annum, down from 19.90 per cent. With this, the bank has cut its loan rate for small borrowers