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Indian Overseas Bank (IOB) has reduced its lending rates following the Reserve Bank of India’s recent policy rate cut, with the changes set to take effect from Monday (December 15).
The public sector lender has lowered its repo-linked lending rate (RLLR) by 25 basis points to 8.10% from 8.35%, fully passing on the impact of the RBI’s latest reduction in the repo rate to borrowers whose loans are linked to external benchmarks.
In addition, the bank has trimmed its marginal cost of funds-based lending rate (MCLR) by 5 basis points across tenures ranging from three months to three years, following approval by its asset-liability management committee.
The revisions will reduce borrowing costs for both existing and new customers with loans linked to these benchmarks. The rate cuts apply across retail, MSME and corporate loan segments, including home, vehicle and personal loans.
The move aligns with broader efforts by banks to transmit monetary policy easing amid softer interest rate conditions.
The public sector lender has lowered its repo-linked lending rate (RLLR) by 25 basis points to 8.10% from 8.35%, fully passing on the impact of the RBI’s latest reduction in the repo rate to borrowers whose loans are linked to external benchmarks.
In addition, the bank has trimmed its marginal cost of funds-based lending rate (MCLR) by 5 basis points across tenures ranging from three months to three years, following approval by its asset-liability management committee.
The revisions will reduce borrowing costs for both existing and new customers with loans linked to these benchmarks. The rate cuts apply across retail, MSME and corporate loan segments, including home, vehicle and personal loans.
The move aligns with broader efforts by banks to transmit monetary policy easing amid softer interest rate conditions.
Additionally, SBI has also revised its lending benchmarks in line with the policy rate cut. The bank has reduced its External Benchmark Linked Rate (EBLR)
by 25 basis points to 7.90%, effective December 15, making loans linked to external benchmarks cheaper for both new and existing borrowers.
SBI has also lowered its Marginal Cost of Funds–Based Lending Rate (MCLR) across tenures by 5 basis points, with the one-year MCLR now at 8.70%. The bank’s Base Rate and Benchmark Prime Lending Rate (BPLR) have been revised down to 9.90%.
