IDBI Bank doesn’t wait for RBI cue, cuts home loan rate
IDBI Bank has reduced its home loan rates by around 0.60%. The home loans of the bank are now at 8.55% to 8.7%. The lowest rate of 8.55% is applicable to the priority sector loans
Surplus liquidity in the banking system is forcing banks to reduce rates even before the Reserve Bank of India’s (RBI) monetary policy tomorrow.
IDBI Bank has reduced its home loan rates by around 0.60%. The home loans of the bank are now at 8.55% to 8.7%. The lowest rate of 8.55% is applicable to the priority sector loans.
The bank has also reduced its one-year marginal cost based lending rate (MCLR) to 8.60% with effect from February 1. MCLR is the rate to which most of the loans are pegged.
While the two-year rate is pegged at 8.85%, the one-month rate is 8.40% and the overnight rate at 8.20%.
With this reduction, loans across categories will be cheaper by 0.30 % to 0.35% on various tenures.
The bank said in a release, “The reduction in MCLR is expected to positively impact loan growth; both in the retail consumer segment and corporate sector lending, thereby supporting the growth impulses in the economy.”
Banks across the board are expected to keep the rates low as the liquidity improves.