State-owned Bank of India (BoI) on Friday announced a reduction of its marginal cost of funds-based lending rate (MCLR) by 25 basis points across all tenors, effective June 1.
The revised one-year MCLR will be 7.70 percent as against 7.95 percent earlier, the bank said in a release.
One-month and six-month MCLRs have been cut to 7.50 percent and 7.60 percent, respectively.
The lender said its external benchmark lending rate, which is linked to the Reserve Bank of India's (RBI) repo rate, has also been reduced by 40 basis points (bps) to 6.85 percent per annum.
Last week, the RBI reduced repo rate by 40 bps to 4 percent from 4.40 percent.
"With this, we have passed on the benefit of the rate cut announced by the RBI to our home, vehicle and MSME (micro, small and medium enterprises) customers," the bank said.
Its base rate has also been cut to 9 percent from 9.40 percent.
The reduction in EBLR and base rate are also effective from June 1.
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