After the 25-point cut in the repo rate by the Reserve Bank, the public sector Oriental Bank of Commerce (OBC) has cut interest rate on different term loans. The bank has cut 10 points in MCLR which will be effective from Tuesday. Following the cut in MCLR, interest rates on loans for one month and six months have come down to 8.35 per cent and 8.60 per cent. Earlier it was 8.45 percent and 8.70 percent. The rate of interest on loan for one year has been reduced from 5 points to 8.70 per cent, which was earlier 8.75 per cent.
However, there has been no change in the interest rate on a one-day and three-month loan. The interest rate for one day is 8.30 per cent and the interest rate for 3 months is 8.50 per cent.
Let’s say, while announcing the monetary policy on June 6, the Reserve Bank has reduced the repo rate 25 points to 5.75 per cent. Since July 2010, it has reached its lowest level. The repo rate is continuously being cut from the last three times.