Bank of Baroda on Monday said it has slashed the interest rate on loans for retail, personal and Micro, Small and Medium Enterprises (MSMEs) to 7.25 percent with effect from March 28. Bank of Baroda, has reduced its Baroda Repo Linked Lending Rate (BRLLR) by 75 basis points with effect from March 28, 2020, it said in a statement.
The BRLLR linked to RBI Repo Rate is revised downwards in line with the reduction on Reserve Bank of India Repo Rate from 5.15 percent to 4.40 percent, it said.
The BRLLR for all new floating rate loans for all personal loans and retail loans of all asset classes and floating rate loans to MSMEs, shall be 7.25 percent effective from March 28, 2020, the state-owned lender said.
"Bank of Baroda has immediately transmitted interest rate changes announced by the Reserve Bank of India to its customers. We encourage customers to avail of the credit lines that have been opened and assure that the Bank is available at all times to meet all the credit requirements in the most convenient way," Bank of Baroda Executive Director Vikramaditya Singh Khichi said.
For existing loans, the interest rate under the external benchmark shall be reset at monthly intervals linked to BRLLR, it said further.
There has been no change in the mark-up/base spread or strategic premium.State Bank of India and Bank of India has also brought down loan rates for consumers, in line with the reduction on Reserve Bank of India Repo Rate from 5.15 percent to 4.40 percent.