Good news for loan borrowers of this bank - Interest rates slashed

It's a good news for people who have taken loans from Bank of Baroda. In a major relief to its loan-subscribing customers, the state-run bank has slashed the repo-linked lending rate by 0.75 per cent, bringing down the interest rate on personal, retail and MSME loans with effect from March 28. 

The bank issuing a statement said, "Bank of Baroda, India's second largest public sector lender, has reduced its Baroda Repo Linked Lending Rate (BRLLR) by 75 basis points with effect from March 28, 2020." The BRLLR linked to RBI repo rate is revised downwards in line with the reduction on Reserve Bank of India's repo rate from 5.15 per cent to 4.40 per cent, the statement added. 

The BRLLR for all new floating rate loans for all personal loans and retail loans of all asset classes and floating rate loans to MSMEs, shall be 7.25 per cent effective from March 28, 2020, the state-owned lender said.

"Bank of Baroda has immediately transmitted interest rate changes announced by the Reserve Bank of India to its customers. We encourage customers to avail of the credit lines that have been opened and assure that the Bank is available at all times to meet all the credit requirements in the most convenient way," Bank of Baroda Executive Director Vikramaditya Singh Khichi said. 

For existing loans, the interest rate under the external benchmark shall be reset at monthly intervals linked to BRLLR, it said further. There has been no change in the mark-up/base spread or strategic premium. 

Recently, State Bank of India and Bank of India also brought down loan rates for consumers, in line with the reduction on Reserve Bank of India Repo Rate from 5.15 per cent to 4.40 per cent. 

In the seventh bi-monthly monetary policy announced on Friday, the RBI reduced the repo rate by 75 bps, the highest cut in 15 years, to 4.40 per cent from 5.15 per cent.

In March 2004, the RBI had reduced repo rate by one percentage point or 100 basis points.