Bank of Baroda said Monday that it will pass on the benefit of the latest 25-basis points (bps) repo rate cut announced by the Reserve Bank of India in its bi-monthly monetary policy. In a press release, it said that the benefit will be applicable on home, car, education, personal loans and all other retail loan products by linking all new retail loans automatically to external benchmark rate (repo).
Under the repo-linked rate scheme, there will be a single rate offered for all customers whether they are salaried, self-employed or a non-resident Indian. The bank also offers an incentive to customers to maintain or improve their credit score to avail of the best rates.
V.S. Khichi, Executive Director, Bank of Baroda said, “We at Bank of Baroda want to pass on the reduced external benchmark based (repo) rates in our retail loan offerings. This is the fastest transmission of rates we have seen in the retail loans segment as most of the MCLR loans were on a 12 month reset period and now, as the change in interest rates by the RBI came within 2 months, the rates for consumer loans under the repo linked benchmark stands revised downwards by 0.25 percent.”
Interest rates on home and auto loans are available from 8.1 percent and 8.6 percent, respectively, as per the release. The bank has on-going offers for home / car / education loans at waived / minimal processing fees till March 31, 2020.