Bank Of Baroda Raises Lending Rates By 5 bps Today

Amidst the Reserve Bank of India (RBI) maintaining its repo rate at 6.5 per cent, Bank of Baroda has implemented changes to its Marginal Cost of Funds based Lending Rate (MCLR) and other lending products, effective from 12 April 2024.

Bank of Baroda has increased its MCLR across four tenors by 5 basis points. Consequently, the bank's base rate now stands at 9.40 per cent, effective from Friday. Additionally, the Benchmark Prime Lending Rate (BPLR) for all existing accounts has been set at 13.70 per cent per annum, starting 12 April 2023.

The new lending rates are as follows: the overnight MCLR is now 8.10 percent (previously 8.05 per cent), the 3-month MCLR stands at 8.45 per cent (previously 8.40 per cent), the six-month MCLR is at 8.65 per cent (previously 8.60 per cent), and the one-year MCLR is set at 8.85 per cent (previously 8.80 per cent). However, the one-month MCLR remains unchanged at 8.30 percent.

For home loans, Bank of Baroda offers interest rates ranging from 8.40 per cent to 10.60 per cent for both salaried and non-salaried individuals. Similarly, the interest rates for home improvement loans fall within the same range. Moreover, the interest rates for Baroda home loans (advantage) for amounts exceeding Rs 75 lakh range between 8.65 per cent to 10.85 per cent for both salaried and non-salaried borrowers. The specific rate of interest depends on the loan limit and CIBIL score of the applicants.

MCLR, introduced in April 2016, replaced the earlier base rate system to determine lending rates for commercial banks. It acts as the minimum lending rate below which banks are not permitted to lend.

Additionally, Bank of Baroda has introduced the BOB Earth Green Term Deposit Scheme to mobilize funds for eco-friendly projects. Both existing and new customers can avail themselves of the Green Deposit scheme at any branch of Bank of Baroda.

In terms of fixed deposit interest rates, Bank of Baroda offers rates ranging from 4.25 per cent to 7.25 per cent per annum. The highest FD rate of 7.25 per cent is applicable for deposit tenures ranging from 2 to 3 years. Moreover, the 399-day Baroda Tiranga Plus Deposit Scheme offers an interest rate of 7.15 per cent per annum. These revised rates came into effect on 15 January 2024.

These adjustments reflect Bank of Baroda's commitment to aligning its interest rates with market dynamics and customer demands, providing competitive offerings to its clientele.