NEW DELHI: State-owned Bank of Baroda on Thursday announced to cut marginal cost of funds based lending rate by 0.15 per cent across all tenors, which will bring down cost of consumer loans. "The bank has revised marginal cost of funds based lending rate (MCLR) with effect from April 12, 2020," Bank of Baroda said in a regulatory filing.
The one-year tenor-- which is the benchmark for all consumer loans such as auto, retail, housing -- has been reduced to 8 per cent from 8.15 per cent. The bank said that from overnight, to six-month tenor loans, the MCLR has been cut to 7.40-7.85 per cent.
This follows country's largest lender SBI's MCLR cut earlier this week by 35 basis points or 0.35 per cent across tenors. Stock of Bank of Baroda closed 5.28 per cent down at Rs 50.85 apiece on the BSE.