When the Reserve Bank of India reduced the repo rate, banks started giving benefits to the common people. State Bank of India, Bank of Baroda, UCO Bank, HDFC Bank are providing cheaper loans by cutting interest rates. Now Punjab National Bank (PNB), the country’s second largest government bank, on Monday announced a 0.40 per cent discount on repo rate linked interest on loans. Now this interest rate will be reduced from 7.05 percent to 6.65 percent. Earlier last week also cut interest rates.
The bank said in a statement that apart from this, the marginal cost based interest rate (MCLR) for all maturity loans has been reduced by 0.15 percent. The bank has also reduced the interest rate on savings accounts from 0.50 percent to 3.25 percent. The bank said the revised rates would be effective from July 1.
HDFC cuts interest rates by 0.15 percent
Home loan company HDFC has cut interest rates by 0.15 percent. HDFC has cut interest rates on home loans, amid a reduction in loan costs. Several other lenders, including the country’s largest bank State Bank of India (SBI), have cut interest rates. HDFC has cut its Retail Prime Lending Rate (RPLR) by 0.15 per cent on housing loans, the company said in a statement.
UCO Bank: 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.
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 that the annual interest rate on its one-year loan will come down to 7.70 percent. Right now it is 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.