Bank of India to reduce lending rates on retail loans from Monday

State-run Bank of India on Sunday said it has decided to reduce its interest rates on retail loans, including home and vehicle loans, with effect from Monday. The bank earlier reduced its minimum lending rates or marginal cost of funds based lending rates (MCLR) by up to 90 basis points, effective January 7, it said in a release Mumbai.

"The revision in rate of interest on retail loans is a consequence of reduction in MCLR," it said. The rate on home loans has been lowered to 8.65% for women borrowers, while for others the rate has been set at 8.70%. The bank has reduced the interest rates for vehicle loans to 9.35%. For loan against property, the new rates are set in the range of 10.50-11%.

The rates for women borrowers will be 0.5% lower than the others, the bank said. Many banks like State Bank of India, Bank of Baroda, ICICI Bank, HDFC Bank and others have reduced their lending rates after they were flushed with funds following the government's move to demonetise high currency notes on November 8 last year.