Interest rates of these banks has changed from June 1, know what will be the effect on your pocket
Many banks have made major changes in their interest rates in the recent past. If you are a customer of Union Bank of India or Bank of India, then from June 1, you should know about the changes in interest rates from the bank. Let us know about these new rates.
Union Bank of India cuts
Union Bank of India on Saturday announced a 40 basis point reduction in external benchmark lending rate (EBLR). After this the EBLR was 6.80 percent. The bank has made this deduction in view of the recent changes in the repo rate by RBI. The new rates will be applicable from June 1, 2020. The effective rates for the schemes reduced by Union Bank of India will be the EBLR plus premium / discount for the product. Union Bank of India had introduced EBLR based interest rates for all the new rate loans to retail and micro and small enterprise segments as per RBI guidelines.
Bank of India’s interest rates will change
The public sector bank of India has announced to reduce its MCLR by 0.25 percent from June 1. With this, Home and Car loan customers will get loans at low interest. Also the loan EMI of old customers will be reduced. According to the bank, this deduction will reduce the annual interest rate to 7.70 percent on a year’s loan. Right now it is 7.95 percent. Similarly, the interest rate of six months loan will be 7.60 percent and the rate of monthly loan will be 7.50 percent.
Repo rate linked loans also reduced interest rates
The bank said that it has also reduced the interest rate of the loan linked to the repo rate of the Reserve Bank by 0.40 per cent to 6.85 per cent. The Reserve Bank of India (RBI), while presenting its monetary policy last week, reduced the repo rate from 0.40 percent to 4 percent from 4.40 percent.
