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Bank of Baroda Slashed Rates by 10 bps; Borrowers with Old Loans to Benefit
July 04, 2017
As per a stock-exchange notification, public sector lender Bank of Baroda has changed the interest rate to 9.5% by cutting 10 bps. This will benefit the borrowers who had taken a loan before April 2016 and not moved to MCLR scheme. However, the differential rate of 8.35% between MCLR and the base rate is still quite high at 115 bps.
Several banks slashed their base rates in April, including SBI that cut its base by 15 bps, Axis Bank by 10 bps, and HDFC Bank by 25 bps. One of the biggest reasons to slash the rates is to discourage the borrowers from switching to the MCLR scheme.
