The Central Bank of India announced Thursday that it has reduced the repo-based lending rate on its loans by 25 bps with effect October 10. According to a press release issued by the bank, the interest rate on housing loans (low risk category) stands reduced from 8.25 percent to 8 percent and for loans for medium and small enterprises it stands reduced to 8.95-9.50 percent from 9.2-9.75 percent.
After the Reserve Bank of India cut the repo rate for the consecutive time this year on Friday, other banks too have followed suit and reduced interest rates on their loans. State Bank of India cut its marginal cost-based lending rate (MCLR) by 10 bps across all tenors, effective from October 10. The one-year MCLR would come down to 8.05 percent a year from 8.15 percent. This is the bank’s sixth consecutive cut in MCLR in FY 2019-20. Indian Overseas Bank would reduce the interest rates in retail and micro small and medium enterprises by 25 basis points with effect from November 1. The stated that it will reduce the interest rate applicable for retail segment – housing, vehicle, education, micro small and medium enterprises by 25 bps and the revised repo linked lending rate would be 8 per cent from existing 8.25 per cent with effect from November 1.