State-run Andhra Bank announced a cut in the marginal cost of funds-based lending rate by 25 basis points across all five tenors- overnight, one month, three months, six months and one year.
The bank is soon planning to introduce repo rate linked deposit and loan products, a press release said.
The rate cut would benefit the customers of the bank in a big way as it significantly reduces the interest burden on their loans, the bank said. The reduced interest rate would benefit borrowers of housing, vehicle, personal and business loans among others, it added.
The benchmark MCLR is now 7.95 percent against the earlier 8.20 percent. The rate cut followed the Reserve Bank of India's decision to reduce the repo by 0.35 percentage point to a nine-year low of 5.40 percent.
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