Another state-run lender, Bank of India (BoI) reduced MCLR by 10 basis points for maturities up to 6 months. Additionally, the bank has reduced interest rates on housing loans and vehicle loans.
The bank on Friday said that the new interest rates for housing loans will now be available from 8 per cent annually and the vehicle loans will now be priced from 8.5 per cent from February 10.
The move came a day after the Reserve Bank of India’s monetary policy committee (MPC) kept repo rate unchanged at 5.15 percent. Repo rate is the interest rate at which the RBI lends money to commercial banks.
Among all banks, national lender State Bank of India was the first bank to announce a reduction in its benchmark lending rates across all tenors. The bank said its marginal cost of funds-based lending rate (MCLR) will be reduced by 5 basis points (0.5 percentage point), and the new rates will take effect on February 10.
(With input from agencies)