Money & Banking

Bank of Maharashtra cuts lending rates by 75 bps

Our Bureau Mumbai | Updated on April 05, 2020

Bank of Maharashtra (BoM) has decided to pass on the full benefit of the RBI’s recent policy rate cut of 75 basis points (bps) to its borrowers, whose loans are linked with the external benchmark – repo linked lending rate (RLLR) – with effect from April 7.

The Pune-headquartered public sector bank has slashed its RLLR from 8.20 per cent to 7.45 per cent.

“All retail loans (housing, education, vehicle) and loans to MSMEs (micro, small and medium enterprises), which are linked to RLLR, will now be available at cheaper rates. This will further benefit the retail and MSME borrowers,” the bank said in a statement.

BoM also reduced its Marginal Cost of Funds based Lending Rates (MCLR) across all tenures by up to 25 bps with effect from April 7. Following the MCLR cut, the one-year benchmark MCLR will come down to 8 per cent (down from 8.25 per cent now).

Published on April 05, 2020

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