Categories: Business

Indian Overseas Bank announces cut in lending rate by 40 bps

Photo: PTI / FILE

IOB cuts lending rates

new Delhi. Public sector Indian Overseas Bank has cut the fund's marginal cost-based debt interest rates (MCLR) by up to 0.30 percent. At the same time, the interest rate of the debt associated with the repo rate has been reduced by 0.4 per cent. In this way, the bank has extended the full benefit of the recent repo rate reduction to the customers. The new rates will be effective from June 10. The bank said in a statement that it has reduced the interest rate of one day loan by 0.30 percent. Similarly, the rate of interest for loans from one month to one year has been reduced by 0.20 percent. At the same time, the bank has also reduced the interest rate for loans linked to repo rate from 7.25 percent to 6.85 percent. The Bank's housing, education, auto, small scale industry (MSME) loans are linked to the repo rate. Hence these monthly installments will now be reduced.

Many banks have reduced their interest rates after the Reserve Bank of India reduced the repo rate by 0.40 per cent last month. This includes Bank of Maharashtra, Punjab National Bank, UCO Bank and Bank of India. On Friday itself, Bank of Maharashtra announced a 0.40 percent reduction in the interest rate for loans linked to the repo rate. The deduction will be applicable from Monday.

This post was published on June 7, 2020 3:09 pm

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