RBI Repo Rate Cut: After the repo rate cut in the Reserve Bank of India (RBI), now the country’s major government banks are losing interest rates of their respective loans. This is expected to make EMI cheap of common people and small businessmen. Many banks have cut up to 50 basis points, which will directly provide relief to the home loan, auto loan and MSME sector. Let’s know which banks have made changes.
Uco bank
UCO Bank has cut a 50 basis point in repo -related lending rate (RLR). This decision is directly related to the new monetary policy of RBI. According to the bank, this step will boost the demand for housing and retail loans as the loan will now be cheaper than before.
Bank of india
Bank of India has reduced its RLR rate effectively from 9.25% to 8.75% from 10 June. This new rate will apply to all new floating rate retail loans and MSME loans. This will also provide relief to small and medium businesses.
Punjab national bank
PNB has reduced its lending rate from 9.60% to 9.10%. This rate will also be applicable from June 10. This will reduce the EMI of customers taking home, auto and MSME loan and it will be easy to take a loan.
Bank of Baroda
Bank of Baroda has reduced its Baroda Repo Linked lending Rate (BRLLR) from 8.65% to 8.15% from 7 June. The bank has retained a markup of 2.65%, which suggests that customers are benefiting from the full rate cut of RBI. Its benefit will be available to both new and existing loan account holders.
When will the remaining banks reduce the interest rate
Many public sector banks have responded immediately after the RBI rate cut. Experts believe that other banks can also make loans cheaper in the coming days. This may increase the demand for debt in real estate, vehicle and MSME areas in the coming months and EMI burden on consumers’ pockets may be slightly reduced.
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