When the Reserve Bank of India reduced the repo rate, banks started giving benefits to the common people. State Bank of India and HDFC Bank are providing cheaper loans by cutting interest rates. At the same time, UCO Bank has also announced a loan for customers at very low interest rates. Public sector Bank of India had cut interest rates on Friday. Explain that the Reserve Bank of India, while presenting its monetary policy last week, reduced the repo rate from 0.40 percent to 4.40 percent.
Loan will be available at 6.90 percent
The country’s public sector bank UCO Bank has made home loans and car loans cheaper. The bank has reduced the interest rate of repo rate based loan by 0.40 percent and brought it to 6.90 percent. This reduction is a move to benefit the customers of the recent repo rate reduction by the Reserve Bank.
We got some good news for everyone! #UCO Bank has reduced the Repo linked UCO FLOAT RATE from 7.30% to 6.90% from TODAY!@PMOIndia @DFS_India @DFSFightsCorona @FinMinIndia @MoHFW_INDIA @ChiefIba @ChairmanIba pic.twitter.com/Wqq87ja9dj
– UCO Bank (@UCOBankOfficial) May 27, 2020
“We have reduced the repo rate based loan interest rate” UCO float by 0.40 per cent, the bank said in a statement. It has changed from 7.30 percent to 6.90 percent since May 27. The bank said that this would make its small and medium industry loans and other retail loans cheaper.
Bank of India reduced interest rates by 0.25 percent
Public sector Bank of India on Friday announced a reduction in the Fund’s Marginal Cost Based Loan Interest Rate (MCLR) by 0.25 percent from June 1 on all its term loans. The bank said in a release that after this the annual interest rate on its one-year loan will come down to 7.70 percent. It is currently 7.95 percent.
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Similarly, the rate of interest for a loan of six months duration will be 7.60 percent and the interest rate of monthly loan will be 7.50 percent. The bank said that it has also reduced the interest rate for loans linked to the repo rate of the Reserve Bank to 0.85 per cent to 6.85 per cent.