State-made banks Union Bank of India, Indian Overseas Bank and Bank of Maharashtra have announced a cut in interest rates for borrowers.
New Delhi: Even though the Reserve Bank (RBI) has not reduced interest rates in credit policy, banks continue to make loans cheaper. State-made banks Union Bank of India, Indian Overseas Bank and Bank of Maharashtra have announced a cut in interest rates for borrowers. If you are thinking of taking loans from these banks, this may be the right time for you. So let’s see which bank has given the interest rates relief.
Bank of India lowers interest rates
Bank of India has cut rates on marginal cost of funds based lending rates (MCLR) by 0.15%. Bank of India has reduced the one-year MCLR from 7.40 per cent to 7.25 per cent. The new rates will come into effect from tomorrow. Similarly, MCLR has been reduced to 6.80% for a day, three-month rates to 6.95% and half-yearly rates to 7.10%. A statement issued by the bank said that this is the fourteenth consecutive cut since July 2019.
Indian Overseas Bank made loans cheaper
If you want to avail a loan from Indian Overseas Bank, the Indian Overseas Bank is also in the way of lowering interest rates. IOB has cut interest rates by 0.10% for all time- IOB’s one-year MCLR declined to 7.65 per cent from 7.75 per cent. The two-year MCLR also declined from 7.75 per cent to 7.65 per cent. In addition, IOB has 7.55 per cent of MCLR rates for three and six months, up from 7.75 per cent earlier. Similarly, interest rates for the day have come down from 7.60 per cent to 7.50 per cent, while MCLR rates for a month have been reduced from 7.30 per cent to 7.20 per cent. However, IOB had given information about lowering rates only last week. The new rates have come into effect from today.
Bank of Maharashtra debt also cheaper
Besides Bank of India and Indian Overseas Bank, Pune’s Bank of Maharashtra has also cut interest rates. However, the bank’s deduction has come into effect from August 7. Bank of Maharashtra has reduced MCLR rates by 0.20 per cent for some time.
One-year MCLR rates have been reduced from 7.50 per cent to 7.40 per cent. Let’s tell you that banks set their interest rates through the MCLR formula. The formula has been decided by the Reserve Bank of India. All banks in the country have been fixing interest rates from marginal cost from this formula since April 2016.
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