It's a good news for you if you have borrowed home loan or car loan from Bank of India. In a major development, Bank of India has reduced its Benchmark Marginal Cost of Funds Lending Rate (MCLR) by 25 bps across tenors from one year to one month and by 15 bps for overnight tenor. The one year MCLR is now 7.95% p.a.

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The new rates are as under: % p.a.

Tenor

Existing MCLR

Revised MCLR

One year

8.20

7.95

6 months

8.10

7.85

3 months

8.05

7.80

1 month

8.00

7.75

Overnight

7.40

7.25
 

The External Benchmark Lending Rate which is linked to RBI’s Repo rate has been reduced by 75 bps to 7.25% p.a. With this, the Bank has passed on the benefit of rate cut announced by RBI on 27th March, 2020 to its Home, Vehicle and MSME customers.

The reduction in interest rates will be effective from 1st April, 2020.

The RBI on Friday put on hold EMI payments on all term loans for three months and cut interest rate by steepest in more than 11 years as it joined the government effort to rescue a slowing economy that has now got caught in coronavirus whirlwind.

The Reserve Bank of India (RBI) cut repo to 4.4 per cent, the lowest in at least 15 years. Also, it reduced the cash reserve ratio maintained by the banks for the first time in over seven years. CRR for all banks was cut by 100 basis points to release Rs 1.37 lakh crore across banking system.

The reverse repo rate was cut by 90 bps to 4 per cent, creating an asymmetrical corridor.

RBI Governor Shaktikanta Das predicted a big global recession and said India will not be immune.