RBI repo reduction effect: Bank of Baroda cuts lending rate to 8.15%; Cheaper loans for homes and cars
Planning to buy a car or a house? Your loan just got cheaper.
Bank of Baroda, one of India's top public sector banks, has slashed its repo linked lending rate (RLLR) by 50 basis points, following the Reserve Bank of India's latest policy cut.
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With the new rate of 8.15% now in effect from June 7, borrowers could see reduced EMIs on home, auto and business loans.
The move is set to make loans for homes, cars, and businesses more affordable, potentially boosting credit demand across sectors. Several other banks are also lowering interest rates in response to the central bank's decision.
The rate cut comes after the Reserve Bank's Monetary Policy Committee (MPC) announced a 50 basis point reduction in the repo rate, bringing it down to 5.5%.
The central bank's Governor, Sanjay Malhotra, said the decision was driven by easing inflation pressures.
With inflation softening and both near-term and medium-term projections staying within the target range, there is room to support growth while maintaining price stability. Food inflation, in particular, has remained benign, Malhotra said.
As a result of the policy move, the Standing Deposit Facility (SDF) Rate has been adjusted to 5.25%, while the Marginal Standing Facility (MSF) Rate and the Bank Rate now stand at 5.75%.
Founded in 1908 by Maharaja Sayajirao Gaekwad III, Bank of Baroda is a state-owned lender serving over 165 million customers across 17 countries. With around 60,000 customer touchpoints and a growing digital footprint, the bank is positioning itself as a reliable and accessible choice for modern banking needs.
The latest rate cut aligns with the bank's commitment to support its customers' aspirations with more affordable credit.
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