Bank of Baroda cuts MCLR by up to 10 bps effective 12 February; home, auto loans to become cheaper

New Delhi: State-owned Bank of Baroda on Monday announced cut in its marginal cost of funds-based lending rates (MCLR) by up to 10 basis points, effective 12 February. The reduction will make home, auto and other loans cheaper for new borrowers. With this reduction, the one-year MCLR has come down to 8.15 percent per annum from 8.25 percent, according to a bank statement. [caption id="attachment_6370131" align="alignleft" width="380"]

Representative image. Reuters[/caption]The reduction in MCLR by the bank comes a day after the Reserve Bank of India left the repo rate unchanged at 5.15 percent but announced long-term repo operation for up to Rs 1 lakh crore, making cost of funds cheaper for banks. While the one-month MCLR has been reduced by 5 basis points to 7.55 percent, overnight, three- and six-month rates were down by 10 basis points, it said. Last week, market leader State Bank of India (SBI) announced 5 basis points (bps) reduction in its MCLR across tenors, effective February 10. This was the ninth consecutive cut in MCLR by the bank in the current financial year.