Interest Rates: Good news for middle class people. Repo rate is currently 6%. In the RBI MPC meeting last month, a 25 bps cut in rates was announced. After which many banks made loans cheaper. The effect of this decision of the Reserve Bank of India is being seen in May as well. Two public sector banks have cut MCLR. New lending rates have become effective from 12 May.
Bank of Baroda has cut the Marginal Cost of Funds Based Lending Rate (MCLR) by 5 bps. Canara Bank has announced a cut of 5 to 10 basis points in MCLR. Let us tell you that MCLR is the minimum interest rate, on the basis of which banks provide loans. The fluctuations in it have a direct impact on personal loans, home loans and other loans. Borrowers will benefit from this decision of the banks. There may be relief from EMI. The cost of loan is likely to decrease.
Bank of Baroda’s new MCLR rates
Overnight MCLR is 8.15%. The rates for one month are 8.35%. The new rates for 3 months are 8.55%, for 6 months 8.80% and for one year 8.95%. The current base rate is 9.45%. The BPLR is 13.75%.
Know the new rates of Canara Bank
After the revision, the new MCLR rates of Canara Bank are 8.20% to 9.20%. Overnight Marginal Cost of Funds Based Lending Rate is 8.20%. The rates for one month are 8.25%. The MCLR for 3 months is 8.45%. The new rates for 6 months are 8.80%, for one year 9%, for 2 years 9.15% and for 2 years 9.20%.