Banks have begun to reduce interest rates. This will give your home loan, auto loan and all other types of loans cheap. ICICI Bank, PNB and Central Bank of India have cut interest rates. These banks have cut the rates after reducing the repo rate of the Reserve Bank.
The Reserve Bank had reduced the repo rate by 0.25 percent in the previous monetary policy. ICICI Bank has cut interest rates by 0.1 percent. The bank has reduced the 1 year MCLR to 0.15 percent to 8.65 percent.
The 6-month MCLR is now 8.6 percent and 8.45 percent for 3 months. ICICI Bank's deduction has been implemented immediately. PNB and Central Bank have reduced the MCLR by 0.5 percent.
PNB's 1 year MCLR is 8.4 percent and central bank's 8.5 percent. HDFC Bank's MCLR is 8.7%. SBI's MCLR is 8.45% and Bank of Baroda has 8.7%.
On June 6, the Reserve Bank of India had reduced the repo rate by 0.25%. Since 2019, the Reserve Bank has reduced rates three times so far. The RBI has cut 0.75 percent. In the June policy, the Reserve Bank of India governor Shakti Daksha Das had said that banks had cut 0.21 percent after RBI cut 0.5 percent.
Whenever the Reserve Bank reduces the repo rate, the bank does not give its full benefit to the customers. This issue has been going on for a long time. So far, the Reserve Bank has cut 0.75 percent this year, but banks have not reduced its half.
Although the banks have cut interest rates, they have cut interest rate on the other side also. ICICI Bank, HDFC Bank and Axis Bank have lower rates on deposits.
