Indian After the Reserve Bank of India (RBI) cut the repo rate by 0.25 percent, the public sector Indian Bank has reduced its repo rate linked key lending rate (RBLR) from 8.2 percent to 7.95 percent. The bank said in a statement that the new rates have become effective from December 6. Reduction in RBLR by 0.25 percent will make loans cheaper for customers. Customers taking RBLR related loans like home loan and business loan will get the direct benefit of this step of the bank. Indian Bank has also reduced the one-year marginal cost of funds based lending rate (MCLR) by 0.05 per cent to 8.8 per cent with effect from December 3.
Bank of India and Bank of Baroda have also made loans cheaper
Apart from Indian Bank, two other public sector banks – Bank of India and Bank of Baroda have also reduced loan interest rates. Bank of India has reduced its Repo-Based Lending Rate (RBLR) by 0.25 percent i.e. 25 basis points to 8.1%. The government bank said in a stock exchange filing that after the cut, the new interest rates have come into effect from December 5. The bank said, “This change has been made due to the cut in the repo rate announced by the RBI in its monetary policy.” Similarly, Bank of Baroda had also announced to reduce its Repo Linked Lending Rate i.e. RBLR from 8.15% to 7.90%. This reduction will be applicable from December 6.
This year the repo rate has been reduced by 1.25 percent.
Let us tell you that this year RBI has reduced the repo rate by a total of 1.25 percent. This reduction has been done in 4 times. RBI first cut the repo rate by 0.25 percent in February this year, after which it was also reduced by 0.25 percent in April. RBI had announced a reduction in repo rate by 0.50 percent in the meeting held in June. After this, there was no change in the repo rate in August and October. After which now in December also, RBI has reduced the repo rate by 0.25 percent to 5.25 percent.
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