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Bank of India (BoI) has reduced its benchmark Marginal Cost of Funds Lending Rate (MCLR) by 25 basis points (bps) across all tenors. It has also reduced its External Benchmark Lending Rate (EBLR) and Base Rate by 40 bps each.
All the rate cuts are effective from June 1, 2020. Post the rate cut, the one-year MCLR will be at 7.70 per cent against 7.95 per cent now.
The EBLR, which is linked to the Reserve Bank India’s repo rate, has been reduced by 40 bps to 6.85 per cent from 7.25 per cent. One basis point is equal to one-hundredth of a percentage point.
With this, the Bank, in a statement, said it has passed on the benefit of rate cut announced by RBI on May 22, 2020 to its home, vehicle and MSME (micro, small and medium enterprise) customers. The Base Rate has also been reduced from 9.40 per cent to 9.00 per cent.
As per the public sector bank’s website, the highest interest rate (with effect from May 1, 2020) that it is offering is 5.90 per cent on term deposit (of less than Rs 2 crore) in the one year & above but less than two years maturity bucket. The interest rate on all subsequent maturity buckets -- two years & above to 10 years -- is 5.80 per cent.
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