India’s third-largest public sector bank and financial service company, Bank of Baroda, declared a relaxation in Baroda Repo Linked Lending Rate ( BRLLR) from 7 percent to 6.85 percent. It was reduced by 15 basis points (bps). Before the festive season, the bank had granted modification in interest rates on home loans and car loans. Now, as per the updated policy of BRLLR, home loan rates and education loan rates began at 6.85 percent, car loan rates at 7.1 percent, and mortgage loan rates at 8.05 percent.
The BoB’s latest announcement about lending rate reduction is good news for the borrowers. It is because, with the reduction in the extrinsic benchmark repo linked rate, all other retail loans of the bank will be modified impulsively. Therefore, all those who are availing of home loans, mortgage loans, car loans, education loans, personal loans, and other retail loan products will be benefited through this reduction. The updated rate cut will be effective from November 1, 2020, onwards.
Harshadkumar T. Solanki, General Manager of Mortgages and Other Retail Assets commented that the curtail of BRLLR makes their home loan, car loan, mortgage loan, education loan, personal loan, and other retail loans more appealing to the customers. He also gave an assurance that the customers will get a lot of benefits from the bank’s offerings during this festive season.
Earlier, ahead of 5 months, the Bank of Baroda (BoB) has proclaimed a reduction in their Marginal Cost of Funds based Lending Rates (MCLR), which came on effect from June 12, 2020. The bank had reduced the MCLR by 15 basis points (bps). At that time, the bank had revised its one-year MCLR to 7.65 percent from 7.80 percent.
Bank of Baroda (BoB) is an Indian state-owned International banking and financial services company headquartered in Vadodara in Gujarat, India. They had served almost 131 million customers. All their initiatives are a sign of their preparation for the development of new business paradigms in a globalized world. On a whole, the latest declaration made by the Bank of Baroda on its rate reduction is a positive signal for the borrowers. Because, when the lending rate is reduced, it will help the borrowers to enhance their further lending activities and thus making tremendous growth.
(This article was originally published in Passionate in Marketing.)