Bank of India cuts MCLR by 25 bps

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State-run lender Bank of India has decided to reduce marginal cost of funds based lending rate (MCLR) by 25 bps across all tenors.

The one-year MCLR of the bank will be now at 7.7% with effect from June 1. The reduction in the lending rate comes after Reserve Bank of India cut the repo rate by 40 bps to 4% earlier this week.

The external benchmark lending rate which is linked to repo rate has also been reduced by 40 bps to 6.85%.

“With this, the bank has passed on the benefit of rate cut announced by RBI on May 22, 2020 to its home, vehicle and MSME customers,” the lender said.