Bank of India Reduces MCLR by 25 bps

Bank of India (BoI) has cut its benchmark MCLR or Marginal Cost of Funds Lending Rate by 25 basis points (bps) across all tenures. The bank has also brought down its External Benchmark Lending Rate (EBLR) and Base Rate (BR) by 40 bps each.

These rate cuts are effective from 01.06.2020. After the rate cut, the 1-year MCLR will be 7.70%, which is 7.95% now.

The EBLR, which is linked to the RBI’s repo rate, has been cut down by 40 bps to 6.85% from 7.25%. 1 basis point = one-hundredth of a percentage point.

The bank said in a statement that it has passed on the benefit of rate cut declared by RBI on 22.05.2020 to its home, vehicle, & micro, small and medium enterprise (MSME) customers. The BR has also been cut down from 9.40% to 9%.

As per the website of the bank, the highest interest rate that it is offering, w.e.f 01.05.2020, is 5.90% on a term deposit of less than Rs. 2 crores in the 1-year and above, but less than 2 years maturity bucket. The rate of interest on all subsequent maturity buckets, i.e., 2 years & above to 10 years, is 5.80%.