State Bank of India, Bank of India and Bank of Maharashtra have decided to cut lending rates by 25 basis points (bps) from today, making loans cheaper for both existing and new borrowers, following the Reserve Bank of India’s (RBI) decision to lower the repo rate last week.
With the latest round of reduction, the Repo Linked Lending Rate of SBI would come down to 8.25 %. It has also reduced the External Benchmark Based Lending Rate (EBLR) by same margin to 8.65 %.
Another public sector bank (PSB), Bank of India, too announced a similar cut and its home loan rate now stands at 7.9 % per annum based on the CIBIL score.
In addition to home loans, it has also reduced the interest rates across select existing retail loan products by 25 basis points, including vehicle loan, personal loan, loan against property, education loan and Star reverse mortgage loan. The PSB has withdrawn its 400-day special deposit scheme, which offered 7.3 %.
Bank of Maharashtra also announced to cut its repo-linked lending rate (RLLR) from 9.05 % to 8.80 %. Since all retail loans offered by the bank are linked to the RLLR, this reduction would benefit customers availing loans for home, car, education, gold and all other retail loan products, it said. The home loan offered by the bank would start from 7.85 % per annum while car loans will be priced from 8.20 % per annum.
On April 9, RBI’s Monetary Policy Committee cut the repo rate by 25 basis points to 6%, its second consecutive reduction, bringing the total rate cut to 50 bps over the past two months.