The state-run Andhra Bank on August 9 announced a cut in the marginal cost of funds-based lending rate (MCLR) by 25 basis points across all five tenors- overnight, one month, three months, six months and one year.
A press release from the lender said, it would soon introduce repo rate linked deposit and loan products. The rate cut would benefit the customers of the bank in a big way as it significantly reduces the interest burden on their loans, the bank said.
The reduced interest rate would benefit borrowers of housing, vehicle, personal and business loans among others, it added.
The benchmark MCLR is now 7.95 percent against the earlier 8.20 percent.
The rate cut followed the RBI's decision to reduce the key interest rate (repo) by 0.35 percentage point to a nine-year low of 5.40 percent.
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