Banking: Bank of Baroda has given good news! Loan has become cheaper for these people, check the latest interest rate here..

Bank of Baroda Lending Rate: State-run Bank of Baroda on Thursday announced a cut in interest rates for retail and micro, small and medium enterprises (MSME). This move by Bank of Baroda comes at a time when the Reserve Bank of India (RBI) on Wednesday reduced the repo rate by 25 basis points to 6 percent.

The government bank said that it is cutting interest rates for retail and MSME segments to pass on the monetary policy relief provided by the RBI to the customers.

Bank of Baroda cuts interest rates.

Bank of Baroda further said that after the cut, the bank's overnight marginal cost of funds-based lending rate (MCLR) has come down to 8.15 percent. At the same time, one-year MCLR has come down to 9 percent.

The move is aimed at providing loans to individuals and businesses at affordable rates, thereby supporting broad economic growth and financial inclusion.

RBI reduced repo rate

RBI Governor Sanjay Malhotra on Wednesday decided to reduce the repo rate from 6.25 percent to 6 percent. With this, the monetary policy stance was shifted from 'neutral' to 'accommodative'. On the repo rate cut, global financial firm Moody's said that the repo rate cut and change in monetary policy stance by the central bank is a timely step.

Repo rate may be reduced.

Moody's believes that RBI can cut the repo rate by up to 75 basis points in the current calendar year. Katrina Ell, Economic Research Director, Moody's Analytics, said that RBI has done the right thing by taking steps according to market expectations in difficult times.

All said, "Uncertainty has a profound negative impact on economies and its impact is widespread. Last week, the US government's tariff threats have seen surprising volatility in bond, currency and equity markets." He said, "In this period of volatility, RBI's predictable response will help the market avoid further volatility."

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