Bank of Baroda to pass on RBI repo rate cut benefit on retail loans linked to external benchmark rate
Author(s): City Air NewsMumbai, October 9, 2019: Bank of Baroda, India’s third largest public sector bank, will pass on the benefits of the reduction in the repo rate of 25 basis points announced by the Reserve Bank of India in its bi-monthly...
Mumbai, October 9, 2019: Bank of Baroda, India’s third largest public sector bank, will pass on the benefits of the reduction in the repo rate of 25 basis points announced by the Reserve Bank of India in its bi-monthly monetary policy.
These benefits will be applicable on home loans, mortgage loans, car loans, education loans, personal loans and all other retail loan products by linking all new retail loans automatically to external benchmark rate (repo).
The retail loan offerings from Bank of Baroda under the repo linked rate product is very simple and a single rate is offered for all customers whether they are salaried, self-employed or an NRI. The Bank also offers an incentive to customers to maintain or improve their credit score to avail of the best rates.
Said V.S. Khichi, Executive Director, Bank of Baroda, “We at Bank of Baroda want to pass on the reduced external benchmark based (repo) rates in our retail loan offerings This is the fastest transmission of rates we have seen in the retail loans segment ever as most of the MCLR loans were on a 12 month reset period and now, as the change in interest rates by the RBI came within 2 months, the rates for consumer loans under the repo linked benchmark stands revised downwards by 0.25%.”
Interest rates on home and auto loans are available from 8.10% and 8.60%, respectively. The Bank has on-going offers for home / car / education loans at waived / minimal processing fees till March 31, 2020.