State-run lender Bank of Baroda on Wednesday said that it will reduce its benchmark lending rate across various tenors by 15 basis points.
Accordingly, the bank will reduce its marginal cost of funds based lending rates (MCLR) across various existing levels and tenors w.e.f. June 12.
The MCLR, the minimum lending rate below which a bank is not permitted to lend, is an internal reference rate for banks to determine the interest they can levy on loans.
Consequently, with the cut, EMIs on eligible loan accounts which are linked to MCLR will get cheaper.