NE BUSINESS BUREAU
MUMBAI, MARCH 29
The public sector lender Bank of India on Sunday announced that it has reduced its Benchmark Marginal Cost of Funds Lending Rate (MCLR) by 25 bps across tenors from one year to one month and by 15 bps for overnight tenor. The one year MCLR is now 7.95% per annum, a bank release said.
The lender’s external benchmark lending rate is linked to the RBI’s repo rate, which was reduced by 75 bps to 4.40 per cent on March 27. “The external benchmark lending rate has been reduced by 75 bps to 7.25 per cent per annum. With this, we have passed on the benefit of rate cut announced by RBI to our home, vehicle and MSME customers,” the public sector lender said in a statement.
It has also cut benchmark marginal cost of funds based lending rate (MCLR) by 25 bps across tenors from one year to one month, and by 15 bps for overnight tenor. The one-year MCLR is now 7.95 per cent per annum.
The new rates are as under:
% p.a.
| Tenor | Existing MCLR | Revised MCLR |
| One year | 8.20 | 7.95 |
| 6 months | 8.10 | 7.85 |
| 3 months | 8.05 | 7.80 |
| 1 month | 8.00 | 7.75 |
| Overnight | 7.40 | 7.25 |
The reduction in interest rates will be effective from April 1, 2020, says a bank release.