Bank of India Slashes Benchmark Lending Rate by 0.1%

Representative photo (Reuters)

New Delhi: State-owned Bank of India (BoI) has cut benchmark lending rate by 0.1 per cent.

The bank has reduced its marginal cost of funds based lending rate (MCLR) by 10 basis points to 8.40 per cent, from 8.50 per cent, effective May 7.

The MCLR regime came into effect from April 1, 2016, replacing the old base rate regime to improve transmission of policy rates and transparency in fixing rates.

Meanwhile, private lender Lakshmi Vilas Bank also lowered the base rate or the minimum lending rate by 25 basis points.

The bank cut base rate to 10.15 per cent, from 10.40 per cent, with effect from May 8.

Accordingly, the interest rates on all loans linked to base rate will be revised, it said.