Bank of Baroda has reduced its lending rate by 0.1 percentage points, the bank made this move to make the home, auto and other loans cheaper. The bank is reducing the lending rate by 10 basis points across all tenors up to one year. March 7 will be the date of effectiveness for making public to get cheaper loans, as per bank.
The bank said that the marginal cost of funds based lending rate for an overnight period is set at 8.25 per cent, whereas the lending rate for the one-month period is fixed at 8.30 per cent.
The one-year period was slashed to 8.65 per cent from 8.75 per cent for the MCLR. Most of the retail loans are benchmarked against one-year MCLR. As per the report, the rate cut came 1 month after Reserve bank reduced the rate by 0.25 per cent points to  6.25 per cent.
Banks are taking some time after Reserve Bank passed the lending rate cuts to end-borrowers.
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