BoB And Union Bank Of India Slash Benchmark Lending Rates By 75 Bps

Money & Banking
?OUR BUREAU

Mumbai | Updated on

March 30, 2020

Published on

March 30, 2020

 

 

Bank of Baroda (BoB) and Union Bank of India have slashed their benchmark lending rates by 75 basis points. In the case of BoB, the repo-linked lending rate (RLLR) has been cut from 8 per cent to 7.25 per cent with effect from March 28.

Union Bank’s external benchmark-linked lending Rate (EBLR) cut, from 7.95 per cent to 7.20 per cent, will be with effect from April 1. Post the cut in the benchmark lending rate, all floating rate loans linked to it will be cheaper to that extent.

These rate cuts come in the wake of the Reserve Bank of India cutting its policy repo rate from 5.15 per cent to 4.40 per cent on March 27. The rate cuts by these two public sector banks will be applicable for all new floating rate personal or retail loans (housing, auto) and floating rate loans to MSMEs.

As Andhra Bank and Corporation Bank are set to get merged with Union Bank with effect from April 1, the EBLR cuts will also be applicable to the customers of the banks which are getting merged.

Customers of these two banks, who have availed loans under external benchmark-based schemes, will automatically get the benefit of reduction in interest rate with effect from April, Union Bank said in a statement.

State Bank of India has already announced a 75 basis points cut in its EBLR from 7.80 per cent to 7.05 per cent with effect from April 1. The bank also reduced its RLLR from 7.40 per cent to 6.65 per cent. Bank of India has slashed EBLR by 75 basis points from 8 per cent to 7.25 per cent.

Published on March 30, 2020

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